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Many people do not know whether their Hong Kong company can file a zero tax return, or do not understand the tax return standards of the Hong Kong Inland Revenue Department. Now let's take a look at the tax return method of Hong Kong companies.
I.Mode of tax declaration
In Hong Kong, there are three situations in which a limited company handles tax returns:
1. Direct tax return after accounting - suitable for unlimited companies with operations;
2. Zero tax return - it is suitable for companies that have just been established or are about to close down. Normal Hong Kong companies must make account audit and tax return;
3. Tax return can only be made after making accounts and auditing - it is suitable for limited companies with operations.
II.How to judge whether your company can file a zero tax return
The following are the actual requirements and standards of the Hong Kong Inland Revenue Department in tax reporting:
In Hong Kong, companies that do not operate or whose profits are not generated in Hong Kong can directly file a zero tax return;Yes, Hong KongOperating companies must make accounts and audit in order to file tax returns. In terms of written records, it can be judged from the following aspects
If the following conditions are met, zero tax return can be made:
1. The government, customs and logistics companies did not leave import and export records;
2. There is no business record left in the bank account;
3. No employees are employed in Hong Kong;
4. No purchase and sales relationship with Hong Kong merchants;
5. Do not allow or authorize the use of movable property in Hong Kong to collect rent, lease fee and other payments;
6. Do not allow or authorize the use of patents, trademarks, designs and other materials in Hong Kong;
7. There are no other profits derived from or generated in Hong Kong;
8. No consignment in Hong Kong.
III.Zero tax declaration process
1.The Hong Kong government requires enterprises to report once a year. Processing time: generally, the new company will receive the notice from the Hong Kong Inland Revenue Department in the 18th month.
2.The zero return of the profits tax form must be reported to the tax bureau with the completed profits tax form within one month after receiving the tax form.
3.Handling process of zero tax return: receiving the profits tax form from the Hong Kong Inland Revenue Bureau → confirmation and signing by the directors → paying tax return expenses → handling at the Inland Revenue Bureau
Tax declaration → after handling, the documents shall be returned to the customer.
IV. Audit tax return process
Provide documents → pay fees → the accountant sends a confirmation letter → manage accounts → audit → submit to the tax bureau for tax declaration → complete the handling and submit the documents
Return to the customer.
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