What are the consequences of not filing accounts and taxes when setting up a company in Hong Kong, China?
In serious cases, the maximum sentence is 6 months
Which Hong Kong companies must have their accounts audited?
As long as you conduct commercial transactions or activities in the name of the company, you have started operating a business. You can judge whether you have been operating a business from the following aspects. If you meet any of the following aspects, you are operating a business. As long as you conduct commercial transactions or activities in the name of the company, your company needs to do an accounting audit.
- The bank account has left a business record
- Government customs and logistics companies have kept import and export records
- The bank account has left a business record Government customs and logistics companies have kept import and export records Headlines of purchase and sale with Hong Kong merchants
- Already employed in Hong Kong, China
- Permitting or authorising the use of patents, trademarks, designs, etc. in Hong Kong, China
- Allowing or authorizing the use of movable property in Hong Kong to collect rent, lease fees, etc.
- Entrusted to sell in Hong Kong, China
- Other profits derived from or arising in Hong Kong, China
How to avoid Hong Kong bank investigation and CRS tax information impact
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Under what circumstances do Hong Kong companies not have to pay taxes?
Hong Kong companies are taxed based on the principle of where the profits come from. If the profits do not come from Hong Kong, they do not have to pay taxes. The Hong Kong Inland Revenue Department generally requires taxpayers to provide sufficient relevant documents to prove the authenticity of the above issues in order to determine the source of the taxpayer's profits.
When does a Hong Kong company need to file tax returns after establishment?
Each Hong Kong company will receive a profit tax return form from the Hong Kong Inland Revenue Department about 18 months after its establishment. The Hong Kong Inland Revenue Department issues the tax form in April every year. This tax form is not issued every year by every company. It is issued by the Inland Revenue Department in the form of random inspections.
When does a Hong Kong company need to file tax returns after establishment?
If you receive a Hong Kong tax form, you must submit it to a Hong Kong accountant to assess how to file a tax return based on the company's bank transactions. Under the new CRS policy, any company with a Hong Kong bank account will face huge risks if they simply file zero tax returns:
★ Filing is a legal obligation. You must file a tax return upon receiving it, otherwise you will receive a court summons and have your account frozen
★ The amount of tax to be paid is determined by the accountant based on the company's situation. You can file a profit or a loss directly.
★ Filing is a legal obligation. You must file a tax return upon receiving it, otherwise you will receive a court summons and have your account frozen
★ The amount of tax to be paid is determined by the accountant based on the company's situation. You can file a profit or a loss directly.
When does a Hong Kong company need to file tax returns after establishment?
Companies established in Hong Kong, China can apply for an extension to submit tax returns based on their own closing date. Generally, there are two ways to do this:
★ Apply for a batch extension. If the closing date of a Hong Kong company's business is after November 30 each year, and the tax representative is under the batch extension plan, then after completing the relevant extension procedures, the deadline for submitting the tax return can be extended to different times according to different categories of closing dates.
★ Apply in writing on your own. In addition to the batch extension plan, you can also apply for an extension in writing on your own. When applying, you need to explain the reason for not submitting on time and attach all supporting documents.
★ Apply for a batch extension. If the closing date of a Hong Kong company's business is after November 30 each year, and the tax representative is under the batch extension plan, then after completing the relevant extension procedures, the deadline for submitting the tax return can be extended to different times according to different categories of closing dates.
★ Apply in writing on your own. In addition to the batch extension plan, you can also apply for an extension in writing on your own. When applying, you need to explain the reason for not submitting on time and attach all supporting documents.
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