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Hong Kong companies do their accounts and tax returns truthfully, but there are still these benefits?!

Views:1573Time:2020-06-08

There are many benefits of tax declaration. Do you understand?

After the successful registration of the Hong Kong company, the accounting and tax declaration is also an essential management link. As for the tax declaration of Hong Kong companies, many customers have a misunderstanding, because now many secretarial companies will tell customers that they can make zero declaration as long as they do not have transactions with local companies in Hong Kong or the import and export funds are within 500000 US dollars, or that your company does not operate in Hong Kong, as long as they do zero declaration. But it's actually very dangerous. According to Hong Kong law, as long as a Hong Kong company has a bank account, capital operation or import and export goods through Hong Kong, it is necessary to make an account and file tax returns.

Although Hong Kong pursues the policy of "low tax rate and encouraging business operation", the Hong Kong government has always been very strict in the aspect of illegal tax declaration. In particular, now that the CRS system is officially implemented in Hong Kong, more severe penalties will be imposed for omissions and underreporting.

The Hong Kong government will impose the following penalties on companies that fail to make true tax returns as required by law:

All returns are accompanied by a declaration, which must be signed by the tax payer to confirm that the information submitted is true and complete. It is illegal to understate / omit to report profit or income in the tax return or to provide wrong information.

Any person who, without reasonable excuse, files an untrue return commits an offence and is liable to a fine of $10000 plus a fine equal to three times the amount of tax underpaid. However, the Commissioner of Inland Revenue may impose penalties in accordance with administrative arrangements.

It is a serious illegal act to submit an untrue tax declaration in order to conceal tax. Upon conviction, the maximum penalty is a fine of $50000 plus a fine equal to three times the amount of a small amount of tax and three years' imprisonment. The court of appeal of the high court issued a warning that a defendant could be sentenced to immediate imprisonment on conviction.

In addition to the penalties explicitly mentioned in the above three laws, the Hong Kong company's bank accounts and funds in Hong Kong, including all assets in Hong Kong, will be frozen.

In fact, the truthful tax declaration is not only to deal with government punishment, but also to bring great help to the follow-up development of enterprises:

1. A normally operating company should pay taxes according to the local tax laws, which is the responsibility and obligation of each enterprise. If the company wants to operate for a long time, it needs to make a real declaration;

2. If you have audit report and tax payment certificate, you can apply for half reduction of booth fee given by Hong Kong Trade Development Council;

3. The assets held under the name of Hong Kong company can be used for financing loans with banks, which can help enterprises to activate their capital;

4. At present, the renewal and settlement of tmall global require the tax payment certificate provided by Hong Kong company, which is the result of normal tax declaration in Hong Kong;

5. It is also one of the necessary conditions to apply for the normal tax declaration of Hong Kong immigrant enterprises in the later stage;

6. If later enterprises want to develop Hong Kong listing, then formal and reasonable tax planning is very important.


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