As always, the Inland Revenue Department has issued about 220,000 profits tax returns this year. Unlike the past, there are new requirements for tax filing this year, everyone should pay special attention to avoid late filing, omission of reporting, fines, and tax investigations.
In the past, the tax bureau required that only the company's which annual total income are more than 2 million dollars, needed to enclosed audited accounts (for limited companies) or the company's management accounts (for other enterprises). Many companies may even do"zero declaration".
In fact, the so-called "zero declaration" means that the company does not operate any business at all and does not own any assets. However, it is very common to see companies that hold self-occupied properties, self-used vehicles (license plates), or receive a small amount of income, will make this "zero declarations" (maybe instigated by some unlicensed/bad tax agents), and this is actually illegal.
The new requirement this year, is to submit audit reports or management accounts regardless of whether the company is in operation (unless it is a true "dormant company" and registered with the Companies Registry).
Please note that auditing needs to be done continuously every year, not just in the middle year of tax declaration. Therefore, if you need to do an audit report, you need to start from the last audited year or even the company’s establishment date. It sometimes needs to do several years or even decades all at once. The workload is very heavy and it takes a long time to process. .
Therefore, if the profits tax return has been received this year, the audit work of previous years must be processed as soon as possible so that it can be completed before the tax return deadline.
Our company is a licensed accounting firm in Hong Kong, with more than 30 years of experience in handling various taxation. Our aim is to "To grow together with our business partners and to enjoy the results". If you have any tax questions, please contact us.
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