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Common Problem

Tax filing | Accounting | Auditing | Secretary |

​Q: When does a limited company need to file an annual tax return?

Answer: For limited companies in Hong Kong, within 18 months after the date of establishment, they can freely choose the time as the company's fiscal year end date. Most of the Hong Kong limited companies use March 31 (consistent with the Hong Kong government's fiscal year) or 12 March each year. The 31st of the month (consistent with the international calendar year) is used as the tax period. Generally, the maximum tax period for the first year of a limited company is 18 months.


Q: When do I need to pay the tax?

A: After the company receives the tax payment notice issued by the tax bureau, the company needs to pay the tax on the specified date in the tax payment notice.


Q: When the tax form is received, the company is not in business, what should I do?

A: If the company still has no business activities when the tax form is received, it should also complete and submit the tax return. Failure to file or late filing of tax returns is bound to result in fines and even prosecution.


Q: What tax does a Hong Kong company have to pay every year?

Answer: Hong Kong companies only need to pay profits tax every year. According to Article 14 of the Inland Revenue Ordinance, if any person operates an industry, profession or business in Hong Kong, and obtains profits from or derived from Hong Kong from the industry, profession or business Assessable profits (except profits from the sale of assets of a capital nature) are taxable, and the rate of profits tax is 16.5% of the company's gross profits.


Q: Are all limited companies required to be audited?

Answer: According to Sections 379 to 387 of the Hong Kong Companies Ordinance, the directors of a limited company are required to prepare statutory financial statements for each financial year. Therefore, in addition to conducting an audit, in addition to meeting the conditions for tax returns, completing the audit on time can also fulfill the requirements of the Companies Ordinance for directors.


Q: What documents do I need to provide when preparing for accounting or auditing?

Answer: If tax declaration or audit is required, the company needs to provide the audit report of the previous year, monthly bank statement, sales or income invoice, purchase, processing fee invoice or receipt, expense invoice or purchase and purchase or sale. Invoices or receipts for fixed assets.


Q: Can the profits of a Hong Kong company offset the losses of the previous year?

A: If the company suffered a loss in the previous year, it can be carried forward in the next year and used to offset the profit of the subsequent year.


Q: Under what circumstances can a Hong Kong company be exempted from paying profits tax?

A: If the source of the company's income is not in Hong Kong, and the company does not set up offices in Hong Kong and recruit Hong Kong employees, the profits earned by the company can be exempted from profits tax, but the company needs to apply to the Hong Kong Inland Revenue Department for offshore Income tax exemption.


Q: Can your company provide Hong Kong accounting, auditing, tax filing and company opening services?

Can. You only need to provide relevant information, and we can handle your company's accounting, auditing and tax returns. The cost will be determined by the actual workload. Please contact us for details.

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