Hong Kong Corporate Tax

Hong Kong Corporate Tax

Hong Kong Profits Tax is one of Hong Kong companies' basic taxes. It is territorial in nature and only profits which are deemed to have, a Hong Kong source are subject to Profits Tax. If a Hong Kong company does not carry on business in Hong Kong or if it income is generates outside of Hong Kong is not subject to Hong Kong tax (offshore status application).

 

Hong Kong Corporate Tax

Basic Requirements for Hong Kong Profits Tax

To be liable to Hong Kong Profits Tax, a company must meet three basic tests as set out by the Privy Council in the Hang Seng Bank case. These tests are:

1. The company must be carrying on a trade, profession or business in Hong Kong;

2. The company must be generating profits from that trade, profession or business of a type which are subject to Profits Tax, for example, trading profits or commission as opposed to non-taxable capital gains or dividends; and

3. Those profits must have a Hong Kong source.

 

Hong Kong Profits Tax Rate

The current profits tax rate is 16.5% on assessable profits. All companies are subject to the same profits tax rate irrespective of their residential status.

 

Hong Kong Tax Return

Hong Kong Tax Return is refers to the reports filed with the department of the Hong Kong Inland Revenue Department containing information used to calculate the taxes and declare liability for taxation. Tax returns are generally prepared using forms prescribed by the tax authority.

 

Hong Kong Tax Return Requirements and Deadlines

The IRD of Hong Kong generally issues the corporate profits tax returns on the 1st of April every year. Normally, profits tax return should be filed within 1 month from the date of issue. The company has to file and complete the tax return together with the following supporting documents:

1. A certified copy of the Balance Sheet, Auditor’s Report and Profit & Loss Account pertaining to the basis period.

2. A tax computation with supporting schedules showing how the amount of Assessable Profits (or Adjusted Loss) has been arrived at.

2. Other documents and information as specified in the Notes and Instructions of the profits tax return.

 

Hong Kong is an ideal jurisdiction in which to incorporate a company with generates profits outside of Hong Kong. Hong Kong is officially a low tax jurisdiction which provides simple, certain and straight forward legislation. With proper planning, Hong Kong company which income is generates outside of Hong Kong is not subject to Hong Kong tax (offshore status application).

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.net http://en.tannet.com.my 

Hong Kong Companies Annual Return Filing

Hong Kong Companies Annual Return Filing

Hong Kong company annual returns, any limited liability companies in Hong Kong should file annual returns to the department of the Company Registry and the Inland Revenue.

 

Companies Annual Return Filing

For a private company having a share capital, you have to file, once in every year, an annual return within 42 days after the company’s most recent anniversary of the date of incorporation (the prescribed time period).

 

For any other companies, you have to file an annual return within 42 days after the annual general meeting (AGM) for the year or within 42 days after the date of the written resolution passed in lieu of the AGM (the prescribed time period).

 

Consequences if fail to file the Annual Return

A company which fails to file Annual Returns within the prescribed time period is in breach of the Companies ordinance and the company, every director, secretary and manager of the company are liable to face prosecution and, if convicted, default fines.

 

Moreover, the Registrar of Companies may consider taking striking off action having regard to the circumstances of each case. The maximum penalty is HK$50,000 for each breach together with a daily default fine of HK$700. In addition, substantially higher registration fee is also payable for the late filing of an annual return of a company having a share capital.

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.net http://en.tannet.com.my 

China Company Audit Report

China Company Audit Report

All companies in China are required to carry out annual compliance procedures as mandated by various governmental departments. It is crucial to be aware of the relevant deadlines as failure to carry out these procedures on time may result in extra expenses, penalties, or even revocation of business licenses. While tedious, this process is a good opportunity for companies to conduct an internal financial health check and to optimize tax efficiency, financial structure and processes, as well as internal control mechanisms for fraud prevention.

Cubes - 157 - AUDIT

China Company auditing is the process of examining the financial statements and the underlying records of the company in order to render an opinion as to whether the statements are fairly presented. Most commonly China Company auditing is performed on a company's request for the benefit of financial information users (i.e. internal and external). China Company auditing is independent appraisal performed by an independent expert of an activity or event. There are operational, technical, ecological and other types of audit. Most commonly, nevertheless, this term refers to audits of financial statements.

 

China Company auditing’s Function

Auditors of China Company auditing examine accounting and financial data and procedures to ensure accuracy and compliance with government guidelines and laws. They work to identify improper accounting or documentation and research issues in order to make recommendations to improve policies or procedures accordingly. Therefore, the main goal of an audit is to perform thorough evaluation of a company's financial records and reports and provide a company with improvement recommendations based on that evaluation.    

 

China Company Auditing Can Perform the Following Auditing Services:

1. Audit financial statements and report in accordance with statutory and other relevant reporting guidelines to fulfill compliance requirements.

2. Evaluate internal operation and accounting controls, suggest possible improvements to safeguarding and control company resources.

3. Provide specialized audits and reports including audits for mergers, acquisitions, stock exchange listing and litigation purpose.

4. Providing the follow up with Inland Revenue Department and Taxation matters.

5. Co-ordinating multi-jurisdiction audits and accounts for trading SME.

6. Restructuring the management accounts for publishing company.

7. Advising an SME on its financial and accounting structure for tax compliance purposes.

8. Working with regional manufacturing SME on forensic accounting in anticipation of acquisition by a major industry player.

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.nethttp://en.tannet.com.my

 

Outsource Payroll Services

Outsource Payroll Services

Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Businesses may decide to outsource their payroll functions to third party for better management.

Outsource Payroll Services

Advantages of Outsourcing :

  1. Time Savings – Payroll processing inside your business is a time-consuming process. Outsourcing payroll allows employers to concentrate on their core business and frees up the business owner, human resources or accounting personnel to work more on strategic tasks that could ultimately affect your bottom line.
  2. Reduce Costs – The direct costs of processing payroll can be greatly reduced by working with a payroll provider.  If you outsource payroll, you don’t have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation OR wanting to request a possible maternity leave that you have to pay for.
  3. Avoid Mistakes / Penalty – A good payroll-services provider is far less likely to make a serious error than your in-house staff. Many outsourced payroll providers calculate payroll taxes, manage filings and payments and will assume the cost of penalties due to incorrect calculations or late payments as long as you provide the necessary information and funds on time.
  4. Team of Experts – By outsourcing payroll, a small business can take advantage of the experts. The most valuable payroll companies have a team of experts who handle many areas of Human Resources and Payroll.
  5. Reliable & Enhanced Security – Payroll processing is a complex and potentially risky business operation. Even with long time trusted employees, there is always a risk of identity theft, embezzlement of funds, or tampering with company files for personal gain. By outsource to the reliable payroll provider, business owner don't have to worried on this.
  6. Peace of Mind – With the help of a professional payroll service provider, the hassle and pain often associated with processing payroll is gone. You provide the basic information, and your payroll company takes care of the rest. you can eliminate the worry that many experience when it comes to paying employees and taxes correctly and on time

 

For a foreign investors stepping into a new market (China, Hong Kong and Malaysia), they may require a reliable agent to deal with the human resource management because it takes much time and energy. Tannet Malaysia can assist corporate with combining human resources and development strategy, to effectively enhance enterprises' results and benefits, and help enterprises to design flexible and encouraging remuneration packages, to increase employee's working capacity and sense of belonging.

 

Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline:603-21418908;
24 hours Hong Kong hotline:852-27837818;
24 hours Hong Kong hotline:86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.nethttp://en.tannet.com.my