Accounting tax audit
What kind of Hong Kong companies need to be audited
Anyone who meets one of the following is considered to have business operations and must be accounted for and tax returns after auditing
Bank account has stored business records
Government customs and logistics companies have left import and export records
Purchase and sale relationship with Hong Kong merchants
Have hired employees in Hong Kong
Allowed or authorized to use patents, trademark designs, etc. in Hong Kong
Allowed or authorized to use movable property in Hong Kong to collect rent, lease fees, etc.
Commissioned to sell in Hong Kong
Other profits derived or generated in Hong Kong
Purpose of auditing
Hong Kong company audit
Regardless of whether a Hong Kong company has profits, it must do an annual audit (also known as a Hong Kong company audit) and report the company’s financial status to shareholders, directors and the tax bureau. This is the company’s basic responsibility
Audit is legal
It is very important for a Hong Kong company to do an accounting audit, and it is illegal without an accounting audit
Hong Kong Inland Revenue Department spot check
The Hong Kong Taxation Bureau will conduct random inspections of some companies from time to time. If they are found to have not audited and filed their tax returns, there may be a risk of closing bank accounts if the circumstances are serious.
Avoid tax risks
Where permitted by law, taxpayers can avoid tax risks through auditing within the scope permitted by the tax law
Proof of favorable income
Applying for financing loans, handling immigration and other businesses, and doing an audit report is a favorable income proof...
CRS Audit Report
The audit report under the global CRS is a favorable income proof. If the tax return is completed without the audit report, it will be regarded as “dirty money” without a source of income.
Popular audit information
The CRS global tax information exchange was implemented in January 2017, and the first round of information exchange will be completed in September 2018. For example, a company registered by a mainlander in Hong Kong has certain deposits in its company account. If the company fails to file a tax declaration in Hong Kong, the Hong Kong Inland Revenue Department will transfer the company information to the State Administration of Taxation, and the shareholders of the Hong Kong Company must pay individual income tax in the country.
Hong Kong, HSBC, Hang Seng and other banks have issued “Business Information Survey Form” to their existing bank accounts to investigate the use of bank accounts by companies and require the submission of financial data such as company financial statements, the name of the accounting firm, and the company’s turnover. As a result, companies that have used zero declarations for Hong Kong taxation for many years have to fill up the accounts of previous years.
Hong Kong company tax return
Tailor the most matching tax filing plan for you
Zero tax filing - tax
filing for inactive business
Business inactive tax filing (i.e. Zero tax filing) must meet the following three conditions at the same time:
1.the company does not operate any business;
2.the company’s bank account does not have any fund transactions;
3.the company does not purchase any property assets
1.Accounting: The accountant will verify the price according to the amount of documents and the degree of complexity.
2.Audit: According to the regulations of the Hong Kong government, the audit must be performed by a Hong Kong CPA licensed accountant.
3.Tax filing: The audited report is submitted to the Hong Kong government which will finally determine the tax amount and result. Overseas gains are not taxable
Accounting audit process
Contact a secretarial service company with relevant qualifications
Only an audit issued by a secretarial service company with relevant qualifications is considered legal and compliant. After evaluation, quotation, and negotiation, an accounting and tax return agreement is signed, and the audit is issued by a Hong Kong licensed accountant.
Prepare audit information
1.Copies of the company's articles of association, business registration certificate and change documents;
2. monthly bank statements;
3.various fee documents;
4.receipts for annual review fees and registration fees, etc.
Sort the documents and submit them to the audit accountant for audit
From here, the consultant will follow up with the accountant, and if you need additional information, you will be contacted for additional information.
The report is handed over to the shareholders/directors for signature. The accountant shall submit the signed audit report to the government for tax filing, and the relevant documents shall be returned to the customer.
Advantages of WTEC
Possess a professional team of senior Hong Kong CPA accountants, familiar with Hong Kong tax rate regulations, which can effectively avoid difficulties and risks in the audit process
To ensure the authenticity and validity of the certificate documents obtained by our company. If false, we bear the relevant responsibility, and there are no hidden fees
Standing in the industry for twenty years. 300+ senior consultants, 13 domestic branches directly under the control
Customized one-to-one services of experienced consultants, plus one-stop consultation and handling, reducing customer time and labor costs
- WTEC Information