The Hong Kong Companies Ordinance requires annual financial statements of Hong Kong limited companies to be audited by Certified Public Accountants (CPA) for further submission in a yearly tax assessment by the Inland Revenue Department of Hong Kong (IRD). Fiscal year of a Hong Kong company can end in December or March. In approximately 18 months after incorporation of a company, Inland Revenue Department will issue a letter requesting for the preparation and submission of a Profit Tax return form. At this point each company will need to appoint an auditor to inspect the company’s accounts and provide bank statements and supporting documents (invoices or contracts) for every incoming and outgoing transaction. We will be glad to help you choose the right accounting and auditing firms so that you could comply with the requirements and regulations of the Hong Kong Inland Revenue Department.
According to the territorial tax concept, only profits made in or derived from Hong Kong are taxable in Hong Kong. Profits derived from the business activities outside of Hong Kong may be considered non-taxable if a number of conditions is met. INTERCORP will assist you in preparation of the documents required to support your Hong Kong company’s offshore claim, will help you optimize your current operations and become eligible for such claim, and will refer you to an experienced Certified Public Accountant who will process your claim and will liaise with the Inland Revenue Department to ensure a successful result of your application.