Corporate Services
Corporate Accounting and Tax Services
Our professional accounting team provides Hong Kong company accounting services, tax filing services, audit arrangements, and offshore tax exemption applications. Our professional services, combined with systematic processes, ensure meticulous and reliable work. We are trusted and valued by our clients, making us the team worthy of entrusting your accounts to.
Accounting and bookkeeping
For business operators, accounting constitutes a vital component of operational management and strategic planning. Whether your company is in its nascent stages or already established, our comprehensive accounting services are tailored to meet your organisation's diverse bookkeeping requirements. This encompasses the regular preparation of financial reports, compliance with the latest accounting standards, and the effective management of your company's financial performance.
Tax planning
We possess a thorough understanding of our clients' businesses and their specific requirements, enabling us to deliver comprehensive tax services. Our professional tax advisers will collaborate closely with you to gain an in-depth understanding of your company's future development direction, thereby assisting you in formulating strategic tax planning to secure the most favourable tax benefits locally in Hong Kong.
Accounting and Taxation 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, enabling us to 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. Should a company not generate any profits, it is not liable for profits tax.
When is the end of the financial year for Hong Kong companies?
By convention, either 31 March or 31 December of each year serves as the tax base period. For Hong Kong companies, the initial tax base period may extend to a maximum of 18 months.
Does Hong Kong need to impose tariffs on imported and exported goods?
Generally, no customs duties are levied on imported or exported goods, with the exception of tobacco, alcoholic beverages and petroleum products. However, all imported and exported goods must be declared to customs.
What types of taxes are levied in Hong Kong?
Hong Kong taxation comprises three types of tax: profits tax, salaries tax and property tax. Profits tax is levied at 16.51% (17.51% for the 2007/08 year) on a company's assessable profits; salaries tax is calculated at progressive rates based on salary income, with the tax payable not exceeding 15% of the total salary income (161% of tax payable for 2007/08); property tax is levied at 151% of tax payable (161% for 2007/08) on rental income from property holdings after deducting a standard allowance of 201% of tax payable for repairs and expenses.
How is Hong Kong's accounting year (assessment base period) determined?
The base period shall be one of the following periods:
The more common practice is to have a year-end on 31 March or 31 December.
May be designated as other months for year-end closing
What restrictions does Hong Kong's Inland Revenue Ordinance impose on tax deductions for charitable donations?
Donations to approved charitable organisations are eligible for tax relief. However, the total amount of such donations must be no less than 1% of taxable profits and no more than 3% of taxable profits (2007/08: 2.5%).
Can the profits of a Hong Kong company offset losses incurred in previous years?
Losses incurred during a taxable year may be carried forward to offset profits in subsequent years.
What is provisional corporation tax?
Profits tax is levied on the actual profits realised during the tax year. As the profits for a given year cannot be ascertained until after the year has ended, the Inland Revenue Department collects provisional tax payments before the year concludes. The following year, once the profits for that tax year have been assessed, the provisional tax already paid may be applied towards the profits tax due for that year.
Under what circumstances may a Hong Kong company be exempt from paying profits tax?
If the company's profits are not derived from Hong Kong, and the company has neither established an office in Hong Kong nor employed any Hong Kong employees, then the profits earned shall 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 require accounting, auditing and tax filing services?
Required. As the company was established for profit-making purposes, even if the Hong Kong company can only fulfil responsibilities to collect and make payments on behalf of others, it is still regarded as an agency service business. Its income derives from monetary transactions such as collections and payments made on behalf of others.
Our company maintains accounts solely with foreign banks within mainland China and has not established any accounts in Hong Kong. Does this mean that the business activities conducted by our company are not subject to taxation in Hong Kong?
No. Under Hong Kong law, all Hong Kong companies are obliged to declare their financial status to the Inland Revenue Department, regardless of whether their business activities occur within Hong Kong. Should the company have no source of income in Hong Kong, it may apply to the Inland Revenue Department for tax exemption.
Should you have any queries regarding our corporate services, please do not hesitate to contact us.
