For a Hong Kong company to remain in good standing, it must file annual accounts on time.
We would like to inform you:-
Every Hong Kong Company needs to prepare an audit report every year.
18 months after the company incorporation date, the Inland Revenue Department will sent a Profit Tax Return (PTR) to the Hong Kong company, you have to complete and submit the return together with audit report within 1 month.
The profit tax rate in Hong Kong for corporations is 16.5% of net profit.
Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable here and profits sourced elsewhere are not subject to Hong Kong Profits Tax.
The principle itself is very clear but its application in particular cases can be, at times, contentious. If you want to claim for an offshore profit, you shall advise us before we start the accounting and auditing, we will assist you to have it stated in the report. The IInland Revenue department) will send a letter of questions and required the company to answer and provide proof that the income is not taxable in HK.
In addition, a Hong Kong company need to submit the Employer/Employee Tax Return to HK IRD every year once the company had employees at any place of the world.
All accounting documents be kept must be in either Chinese or English.