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Accounting, audit and tax are an evitable work that an entrepreneur has to handle as a corporate compliance. We have created a checklist to make business life easier.
Decide Financial Year End It is a statutory requirement for a Hong Kong company to have the first audited accounts within 18 months from the incorporation date. It is common to have March, June, September and December. Once the financial year is decided, the same financial year end will carry on.
Keep Operating Records In order to prepare accounting records, documents which include bank statements, contract, invoice, receipt, etc. have in an orderly fashion and be kept throughout the year.
Prepare Accounting Records Financial statements include General Ledger, Income Statements and Balance Sheet. It is on a monthly, quarterly or yearly basis. It is always advisable to use professional practice to save your time and to ensure it is properly done.
Auditing The financial statements and accounting records have to be presented to a Certified Public Accountant for audit. It usually takes around 4-6 weeks to have an auditing exercise done subject to availability of bank confirmation.
Profits Tax Return (PTR) A company can expect to receive its first PTR within 18 months from its incorporation date. The PTR has to be completed, signed and submitted together with the audited accounts to the Inland Revenue Department. For the first PTR, there is 3 months period submission timeline from the issuance date. Only one month from issuance date for filing for subsequent PTR.
IRD’s Assessment There is 2 tier tax system under Profits Tax Regime. The tax rate is 8.25% on the first HK$2 million assessable profits and 16.5% thereafter. The IRD will assess a company’s tax status based on the filed PTR and will issue tax assessment which includes tax payable deadline.
Need Assistance INTERSHORES has over 20 years of corporate services experience and can assist you with accounting, audit & tax filing. Please do not hesitate to contact INTRESHORES at info@intershores.hk or by whatsapp at (852) 6499 4686.
Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk
Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice. |
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