The 2021/22 tax season is over, and the 2022/23 tax season is just around the corner.
Recent years, the Hong Kong Inland Revenue Department has taken a very strict attitude towards the overdue submission of tax returns. Once the deadline is passed, the fine will be received soon. For late submission of tax returns, there is a chance of being fined, receive assessed tax or even recourt summons by the tax bureau.
In fact, overdue fines are completely avoidable. As long as you make preparations in advance and prepare income and expenditure records, etc., you can process the tax return immediately after receiving the tax return and submit it on time.
According to the current general practice of the tax bureau, tax returns are issued to loss-making companies every three years. However, if the company has taxable profits in any year, the company is obliged to voluntarily report to the Inland Revenue Department within four months after the year-end.
Therefore, it is recommended that the company do a good job of accounting and auditing as usual every year. Otherwise, when receiving tax return several year later, and the company have not done their accouting and auditing from the past, and may necessary to complete several years of accounting and auditing within one month. As you can imagine, with the passage time, memory fades, and audits are delayed for several years, it will be hassle to the directors and employees.
Therefore, accounting, auditing, tax declaration and other work every year are the most important and should not be underestimated.
If you have any tax-related inquiries, or want to do a good job in tax planning, please feel free to contact us.
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