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As one of the offshore financial centers, Hong Kong has a good business environment and a growing number of registered Hong Kong companies. After the completion of the registration of Hong Kong company, in addition to the annual review of the company on time, the accounting and tax declaration is an indispensable part of management. The Hong Kong Tax Bureau has issued the latest tax declaration notice for 2020.
Hong Kong company tax declaration
April is the peak period for the issuance of Hong Kong tax returns, that is, the time period for Hong Kong companies to declare and pay taxes. According to the latest news from the Hong Kong Tax Bureau, the tax bureau has recently issued arrangements and circular letters to arrange tax returns for 2019 / 20:
① Arrangements for the issuance of tax returns for 2019 / 20 by the Hong Kong Revenue Department
② Suspension of services for filing individual tax returns via tax exchange
③ Arrangements for the postponement of tax returns for 2019 / 20 in the whole batch (arrangements for tax returns in the next year)
This year's return will still be issued from April 1. Unlike previous years, this year's return will be sent in three periods: "property tax return and employer's return", "profit tax return" and "individual person's return".
Time of receipt of profit tax form
According to the Hong Kong Tax Bureau, the first profits tax return of a newly established Hong Kong company is usually issued about 18 months after the establishment date. Hong Kong companies need to complete account audit and tax return within three months after receiving profit tax returns. Hong Kong companies, which have been established for many years, usually make profit tax returns in April of each year, and Hong Kong companies choose to complete field tax returns within one month.
Tax declaration method of Hong Kong company
When the Hong Kong company receives the profit tax return, it needs to consider the tax return method:
① Accounting audit and tax declaration: Hong Kong companies with business need normal audit, audit and tax declaration.
② If the offshore income of Hong Kong Limited meets the conditions of "the source of profit is not in Hong Kong", it can apply for exemption from profits tax from the government.
③ No operational reporting: if the Hong Kong company does not have any business transactions during the tax year, including any bank access, collection of any income or payment of any fee, it may apply for a zero tax reporting.
Hong Kong companies voluntarily file tax returns
Some Hong Kong companies would ask if they didn't receive the profits tax return, which is the wrong idea. No matter whether Hong Kong company receives the profit tax form or not, Hong Kong company does a good job of account audit and actively, punctually and honestly file tax returns. Hong Kong companies in normal operation do not have to wait for the receipt of tax returns before handling tax audit matters. They should prepare bill receipts and other accounting information in advance to provide to the accounting audit institutions.
Late tax returns will be punished
Hong Kong companies are likely to face greater penalties for failing to file tax returns on time. The first is to face a fine. In serious cases, the reputation of Hong Kong companies is damaged, bank accounts are frozen, and the chairman of the company's shareholders is blacklisted or even sued by the court. Because the tax form has a certain time limit, in addition, it also needs a certain time for the entrusting agency to make accounts and issue audit reports. Therefore, Hong Kong companies should seize the time to avoid overdue.
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