Enterprise Services
Corporate Accounting and Tax Services
Our professional accounting team provides Hong Kong company accounting services, tax filing services, audit arrangement services, and offshore tax exemption applications. Our team delivers professional services through systematic processes, working with rigor and reliability. We are trusted and valued by our clients, making us the team you can confidently entrust with your accounts.
Accounting and bookkeeping
For business operators, accounting is a crucial component of operational management and strategic planning. Whether your company is in its initial stages or already established, our comprehensive accounting services can meet your diverse bookkeeping needs across all levels—from preparing regular financial reports and adapting to the latest accounting standards to effectively managing your company's financial performance.
Tax Planning
We have a thorough understanding of our clients' businesses and their specific requirements, enabling us to provide comprehensive tax services. Our professional tax advisors will work closely with you to gain deep insight into your company's future development direction, thereby assisting you in formulating strategic tax planning to maximize tax benefits within Hong Kong.
Accounting and Tax Services Package
Depending on each company's specific financial and tax circumstances, we require you to provide complete and detailed documentation and information for reference so that we can prepare a comprehensive quotation.
Fundamentals of Accounting and Taxation
Advanced Accounting and Taxation
Any questions?
Frequently Asked Questions
What taxes must Hong Kong companies pay annually?
Hong Kong companies are only required to pay profits tax annually, calculated at a rate of 16.51% (2007/08: 17.51%) of profits. If a company does not generate profits, it is not required to pay profits tax.
When is the fiscal year-end for Hong Kong companies?
By convention, either March 31 or December 31 of each year serves as the tax base period. For Hong Kong companies, the first-year tax base period may extend up to 18 months.
Does Hong Kong need to impose tariffs on imported and exported goods?
Generally, imported/exported goods are not subject to customs duties, except for tobacco, alcoholic beverages, and petroleum. However, all imported and exported goods must be declared to customs.
How many types of taxes are there in Hong Kong?
Hong Kong taxation comprises three types of taxes: profits tax, salaries tax, and property tax. Profits tax is levied at 16.51% (17.51% for the 2007/08 fiscal year) on a company's assessable profits. Salaries tax is calculated at progressive rates based on salary income, with the tax liability capped at 15% of total salary income (161% TP3T for 2007/08); property tax is calculated at 151% TP3T (161% TP3T for 2007/08) on rental income from property holdings after deducting a standard allowance of 201% TP3T for repairs and expenses.
How is Hong Kong's fiscal year (assessment base period) determined?
The base period is one of the following periods:
The most common fiscal year-end dates are March 31 or December 31.
Can be designated as other months for year-end closing
What restrictions does Hong Kong's Inland Revenue Ordinance impose on charitable donation deductions?
Donations to approved charitable organizations are tax-deductible. However, the total amount of such donations must be no less than $100 and no more than 35% of the assessable profits (2007/08: 25%).
Can a Hong Kong company's profits offset losses from previous years?
Losses incurred during a taxable year may be carried forward to offset profits in subsequent years.
What is provisional income tax?
Profits tax is levied based on the actual profits earned during the tax year. Since the profits for a given year cannot be determined until after the year ends, the Inland Revenue Department collects provisional tax payments before the year concludes. The following year, once the profits for that year are assessed, the provisional tax already paid can be applied toward the profits tax due for that year.
Under what circumstances can a Hong Kong company be exempt from paying profits tax?
If a company's profits are not derived from Hong Kong, and the company has neither established an office in Hong Kong nor employed Hong Kong employees, the profits earned will be exempt from profits tax.
My Hong Kong company only maintains a bank account to collect invoices on behalf of other Chinese companies. Does this Hong Kong company need to handle accounting, auditing, and tax filing?
Required. Since the company was established for profit-making purposes, even if the Hong Kong company only performs the duty of collecting and paying on behalf of others, it is still regarded as an agency service business. Its income stems from monetary transactions such as collections and payments made on behalf of others.
Our company maintains accounts only with foreign banks within China and has not opened any accounts in Hong Kong. Does this mean that the business conducted by our company is not subject to taxation in Hong Kong?
No. Under Hong Kong law, all Hong Kong companies are obligated to report their financial status to the Inland Revenue Department, regardless of whether their business activities occur in Hong Kong. If the company has no source of income in Hong Kong, it may apply to the Inland Revenue Department for tax exemption.
If you have any questions regarding our business services, please feel free to contact us.
