Accounting, Auditing and Taxation FAQ

Yes, all companies (except dormant companies) must prepare audited financial statements annually, as required by the Companies Ordinance.

All companies will receive their first Profit Tax Return (PTR) from the Inland Revenue Department (IRD) 18 months from their incorporation date and MUST be submitted to IRD within 3 months after receving the PTR.

Yes. According to the latest update from The Inland Revenue Department (IRD) in 2023, all corporations and businesses, regardless of the amount of their gross income and the mode of return filing, must submit their profits tax returns together with all supporting documents (including financial statements and profits tax computations). Late submission will be subject to fines.

• Bookkeeping: Monthly or annual accounts preparation.
• Auditing: Arranged with certified public accountants.
• Tax Filing: Profits Tax Returns, Employer’s Returns, and Salary Tax filing.

For more related services and details, please visit Accounting and Taxation Service page.
https://www.bbcl.com.hk/us/accounting-and-taxation

Yes, you can apply for tax exemption on offshore income under Hong Kong's territorial tax system. To qualify, you must prove the income was earned outside Hong Kong by providing documents such as contracts, invoices, and bank statements when filing your Profits Tax Return. The Inland Revenue Department (IRD) will review the claim and may request more evidence. Without sufficient proof, the income may be taxed.

Late filing can result in a HKD$10,000 fine and additional penalties based on unpaid taxes. The IRD may impose a 5% surcharge on overdue tax and an extra 10% surcharge if it remains unpaid. Repeated delays can lead to higher penalties or prosecution, so filing on time is essential.