Hong Kong is an offshore jurisdiction where accounting is a must. It does not depend on where you make your business: inside or outside Hong Kong. The first thing you should do is to prepare Profit Tax Return and send it together with financial statement to the Tax Department of Hong Kong. Companies that did not have any activity during the fiscal year could prepare a zero statements. The annual statements of Hong Kong companies required to be audited by Certified Public Accountants for further submission in the yearly tax assessment.
The first financial statement should be prepared after 18 months of company existence. In 18 month after company incorporation you will receive a letter from the Tax Department to notify about preparation of Profit Tax Return. Due to Hong Kong laws you can set the reporting period by yourself but it should nor exceed 18 months.
What’s made this offshore jurisdiction different is that you determine reporting period for your company by yourself. The only requirement is that duration of this period should be 12 months. For instance, the standard fiscal period in Hong Kong is from April 1 to March 31 but you can set your reporting period from January 1 to December 31.
In the end of year the company has to appoint an external auditor and provide him with following documents:
- Sales and Purchase invoices.
- Bank references from all bank account opened for the company in Hong Kong.
- All income and outcome documents that prove receiving and expenditure money.
- All contracts that were signed during reporting period.
Do you think about how to cope with all these work? Swiss Financial Yard becomes your reliable advisor on the issue of accounting and audit. Contact us today to receive free consultation.