Accounting and Taxation Service
Professionally handle everything related to the Inland Revenue Ordinance

If it is regarding the late filing of a tax return form, client should complete the filing and pay the fine within the specified date to avoid being prosecuted by the Inland Revenue Department. Fail to do so is an offence and is subject to a fine of $10,000 and a further fine of treable the amount of the tax undercharged.

Individuals receiving a court summons is recommended to attend the hearing at the court mentioned on the specified date for defend and follow the proceedings accordingly.

You may contact BBC for consultation or representation. For details please check with our customer service.

You may also contact BBC for accounting and auditing service as to file the required tax return. For details please check with our customer service.

No. According to the laws of Hong Kong, companies incorporated in Hong Kong must file tax returns with the Inland Revenue Department, regardless of the place the business is conducted. If the source of income is not Hong Kong, one can apply with the Inland Revenue Department for exemption of corporation tax for offshore income.

Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable here. 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, sometimes, contentious. Company trying to claim offshore income tax exemption should submit the claim with supporting documents when they file their Profit tax return and audit report to the Inland Revenue Department. You may refer to the IRD link below for more information

詳情可參考稅務局指引:
https://www.ird.gov.hk/chi/paf/bus_pft_tsp.htm?_referer=www.asiabs.com

Your net chargeable income, i.e. assessable income after deductions and allowances, is charged at progressive rates. But if what you need to pay on the basis of your net chargeable income exceeds the tax charged at standard rate on your net total income, i.e. assessable income after deductions but before allowances, then you have to pay the lower amount of tax.
Assessment year refers to April 1 to March 31 of the following year. Tax payable is computed on the net chargeable income an individual from April 1 of the previous year up to March 31 of the current year. You may refer to the following link for more information on the tax rates and computation of salaries tax:
https://www.ird.gov.hk/chi/pdf/pam61c.pdf

You will have to file the salary tax return within a month from its issue date. If you fail to do so, the Inland Revenue Department may compute and issue your tax demand note based on an estimated net chargeable income and you may end up paying a higher amount of salary tax. You might also be prosecuted or fined for the delay in filing tax return.

BBC will quote based on the number of business transactions and total sales turnover of the fiscal year. Our price will include service in the following areas:

• Preparation of financial statements including Profit & Loss account, balance sheet, trial balance and general ledgers
• Arrangement of auditing of the account books with a practicing CPA
• Preparation of audited financial statements
• Computation of profit tax
• Completion and filing of Profit Tax Return
• Printing and delivery cost of the required documents to Inland Revenue Department (not included courier cost of documents between you and BBC)

Express service can be provided at a premium.

It generally takes about 3-4 months from confirmation of the service request. However, the exact time might differ depending on the comprehensiveness & completeness of information and documents provided and the responsiveness and time taken for documents confirmation and sign back.

Express service speeds the procedures up to around 4-6 weeks (including preparation and completion of the final audited financial statements). Still the exact time would be affected by comprehensiveness & completeness of information and documents provided and the responsiveness and time taken for documents confirmation and sign back.

Clients have to provide bank statements, sales invoice, purchase order, invoices on general expenses, inventory list, fixed assets, tenancy agreements, investments etc.

《稅務條例》第 16(1)條規定，在確定任何課稅年度的應課稅利潤時，為產生該應課稅利潤而招致的一切支出和開支，均須予以扣除。
另外可參考保存業務紀錄須知:
https://www.ird.gov.hk/chi/pdf/c_51c_pam.pdf

Every company will receive The Employer’s Return of remuneration and pension from the Inland Revenue Department in every April. It has to be completed and filed to the IRD within a month of its issuing date, even you have not hired any employees during the year. Offenders may be prosecuted and fined. Refer to the following link for more information.
https://www.ird.gov.hk/chi/pol/ppo.htm

A year of assessment runs from April 1 in the current year to March 31 of the following year. The form IR56B should be filed based on this time frame.

BBC charges HKD500 / filing for every director or employee per assessment year, if your company has paid directors or employees. You will have to provide income proof of the individuals involved in these filing. If there is no employee, or the director does not receive an income, BBC’s service fee is HKD800 / filing per assessment year.

Stamp duty is calculated based on the company’s net chargeable asset, which is best reflected by financial statements recently audited. Internal financial statements within the last 3 months can also be used if audited financial statements are not available.

At share transfer, each party is to pay stamp duty based on 0.1% of the amount of consideration, or the net assets of the subject company subjected to be transferred, plus HKD5 for each transfer.

e.g. A is to transfer 10,000 ordinary share of company X to B. The quantity of which equals to 50% of rights in the company. Company X is worth $1 million at the time of transfer. Computation of stamp duty for the subject share transfer is as follows:
($1m x 50%) x 0.2% x 2 + $5 = $1,005
A should pay stamp duty of $502.5
B should pay stamp duty of $502.5

You have to provide the following documents:
1. Latest audited financial statements. If you do not have them available, you can provide the latest internal financial statements. In the case of holding companies, you have to submit a consolidated financial statement.
2. Memorandum of Association of the company
3. Certificate of Incorporation
4. A copy of the transferee’s Identity Card and address proof
5. Quantity of shares to be transferred and the corresponding considerations.
6. Agreement of share transfer (if any)

The company must meet the following conditions before making an application for deregistration:

• all the members of the company agree to the deregistration;
• the company has not commenced operation or business, or has not been in operation or carried on business during the 3 months immediately before the application;
• the company has no outstanding liabilities;
• the company is not a party to any legal proceedings;
• the company’s assets do not consist of any immovable property situate in Hong Kong;
• if the company is a holding company, none of its subsidiary's assets consist of any immovable property situate in Hong Kong; and
• the company has obtained a "Notice of No Objection to a Company being Deregistered" ("Notice of No Objection") from the Commissioner of Inland Revenue.

It takes around 6-9 months to deregister a company that has not commenced business, and about 9-12 months for companies that have commenced business. Companies that have commenced business would have to provide the last audited financial statements for the process involved. The time taken might differ depending on the completeness of the required documents provided.