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As we all know, Hong Kong is an international platform for enterprise development. For entrepreneurs, Hong Kong is a paradise for entrepreneurship. Although Hong Kong companies are very similar to domestic companies in accounting and tax declaration, the tax system in Hong Kong is simpler and the tax rate is relatively low compared with that in China. So what are the ways for Hong Kong companies to file tax returns?
Hong Kong company tax declaration
According to whether the company has any business or not, there are mainly the following ways for Hong Kong companies to make accounting and tax returns:
1. Normal audit tax return
For Hong Kong companies in normal operation, account checking and tax declaration shall be carried out according to the requirements of the Hong Kong Tax Bureau. That is to say, after receiving the profit tax form, it is necessary to report to the tax bureau truthfully according to the operation of its own company. Although Hongkong implements the "low tax system" policy, Hongkong has always been strict with illegal tax declaration, especially after the implementation of the CRS system in 2018, Hongkong has adopted a severe punishment system for the omission and underreporting.
The newly established Hong Kong company will receive the tax returns in the 18th month after the establishment date. The Hong Kong company must complete the audit and tax return within 3 months. Since then, Hong Kong companies in normal operation will receive tax returns every year. Hong Kong companies must do a good job in tax declaration every year. If the tax declaration is delayed or there is a false tax declaration, it will affect the reputation of the enterprise.
2. Apply for zero declaration
A non operating Hong Kong company can apply for zero declaration. Within a certain period of time, the taxpayer has no taxable income and no taxable amount, which is called zero declaration. The fact that a Hong Kong company has no business usually means that the Hong Kong company has not started its business after its establishment, or that the Hong Kong company has ceased its business or is ready to cancel its liquidation.
Non operating Hong Kong companies need to meet the corresponding conditions, such as the Hong Kong company does not open a bank account, the offshore account does not have a flow record within the specified time, there is no import and export record of goods within a certain period of time, the company does not employ employees, etc., only when the corresponding conditions are met can it be proved that the enterprise does not have business behavior, and the non operating Hong Kong company that meets the corresponding conditions You can apply for zero declaration.
3. Application for offshore exemption
For companies whose business profits do not come from Hong Kong, an offshore exemption may be applied for. Application for exemption from offshore income tax means that the Hong Kong Tax Bureau agrees that the profits generated by the company belong to offshore income, and the offshore income of Hong Kong Limited company can be exempted from profit tax according to Hong Kong tax regulations. When filing Hong Kong profits tax, Hong Kong Limited applies to the Hong Kong Tax Bureau for "offshore income" to exempt from Hong Kong profits tax.
The method of applying for offshore exemption is applicable to Hong Kong Limited companies without business in Hong Kong. For example, all business operations of Hong Kong companies, including sales, procurement, technical support, customer service and other activities, are not conducted in Hong Kong. The company can apply to the tax bureau for exemption from offshore income tax. Once approved, all offshore income is exempt from Hong Kong profits tax. In order for a company to apply to the Inland Revenue Department for exemption from offshore income tax, it must first audit the company's accounts.
It is very important for an enterprise to make an account and report tax. Compliance and legal operation are the premise of sustainable development of an enterprise. At the same time, compliance and reporting tax and keeping a good reputation record are also important standards for a partner enterprise to consider. Looking for a professional secretary company to act as an agent for tax declaration can not only prevent the delay of tax declaration, save the company's expenses, but also help the enterprise's tax planning.
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