Hong Kong Tax, Accounting & Auditing

Hong Kong tax and accountancy are based upon British standards, and as such are similar to that which you may already be familiar with in the West.

Hong Kong requires that all businesses file an annual tax return on their profits with the HK Inland Revenue, and undergo an annual accounts audit performed by an independent CPA.

Hong Kong takes accounting and tax fraud very seriously, with strict sanctions for offenders from the local government and banks. Therefore it’s crucial that your accounts are filed professionally and attentively to mitigate any issues you may have arising from the annual accounts audit you’ll be required to undertake.

Hong Kong, a world famous free economic zone, together with its good infrastructure and well-developed legal framework, provides outstanding business environment and attracts investors around the globe. However, administration and inspection on the management of Hong Kong registered companies is more than strict, especially on the financial and tax statement. Hong Kong CPAs must be hired for company annual auditing, based on the regulations of the Companies Ordinance (CO) and Inland Revenue Ordinance of Hong Kong company Registry.

According to Article 122 of the Companies Ordinance, annual financial statements of all limited liability companies registered in Hong Kong need to be inspected and audited by CPAs. Inland Revenue Ordinance also requires an audited financial report and statement for annual tax declaration. 

There will be slight difference for auditing each year. In general cases, Inland Revenue Department will deliver profit tax return to all limited liability companies in Hong Kong on the first working day of April. When you receive profit tax return, you should complete forms within a month and submit them for tax declaration, together with your audited report. Delayed tax return may result in fines, courts summons and even imprisonment.