At some point, you may be struggled in the tax planning. Sitting with a stack of invoices is not your idea of a great weekend. The files can bury you in eye-crossing long nights. That’s why we’re here to tell you – you’re not alone. It’s time to hire accounting service in Hong Kong. Work with Get Started HK, as extension of your team.
What you need to know about the annual tax filing requirement in Hong Kong
Prepare the accounting financial statements.
These include the income statements, balance sheet and General Ledger. Please safely keep your bank statements & invoices.
Audit these financial statements by a HKCPA.
All these financial statements are required to be audited and signed by a certified public accountant annually.
File the Profits Tax Return with the audited financial statement.
Every company is required to report their assessable profits (or adjusted loss) on the Return. The director or a responsible company representative need to sign a declaration and confirm the details are true, correct and complete.
After setting up a company in Hong Kong, it is important to keep your accounting records in accordance with the local regulations. Get Started HK has a team of professional accountants who are qualified in Hong Kong and we can provide you with different solutions to meet your profits tax reporting needs.
True. Honest. Straightforward. Affordable.
Are you a startup or SME that are looking for affordable accounting service? You may notice some firms out there charge accounting fees by your monthly revenue. Beep Beep. This may be a scam alert. If you come across firms charging by revenue, make sure you find your way to leave and compare the price with a few more trusted accountants first. There is only one golden rule at Get Started HK, that is to count the volume of transactions. For instance, if you only have less than 10 transactions a month, we charge the basic fees for 10 transactions. We don’t charge by your revenue for the 10 transactions.
Many small business owners may not have accounting background. Using an accounting software for the first time could be like a person learning how to ski with a professional ski gears, a person learning how to swim with a professional fast-skin swimsuit, it helps but things won’t be perfect.
You can use accounting software to key in data, however, how do you present this to the Tax Department? Some company formation agents will sell you an accounting software like XERO so they can earn a commission. You type all the data in the accounting software and the software generates the report for you. Do you think it is really that simple? Think about it….Does the tax department use software to review and approve your case? In Hong Kong, we can tell you that the answer is “No”. They use a human to review and analyse your case. People in the tax department are very experienced. If there are faults in the report, they will be able to spot it. Eventually this may affect your offshore 0% tax status! Sounds horrible, right? Don’t Worry. GSHK offers you two solutions! 1. Accounting + auditing to GSHK or 2. Software + auditing to GSHK 🙂
How Much Does Get Started HK Charge for Bookkeeping, Accounting, and Auditing?
We agree upon a fixed price with prospective clients before the start of the work. We provide the exact level of services needed for profits tax filing. The cost is different to every company, depends on the size of business, industry, and bookkeeping methods. We guarantee for no hidden charge. We focus on efficent communication and results. So clients have no worry about any surprise bills.
Why Choose Get Started HK as Tax Representative?
We are a team of expereniced accountants who’ve worked at the big four. We are here to offer professional and dependable advice that help your organizational growth and solve your tax libablities. We are not AI. Your questions won’t be answered by chatbot. We add real values and provide tailor consulting to your siutation.
- Complimentry Profit Tax Return filing
- Tax strategies, allowable expenses and deductions, shareholder loans
- Ongoing support for accounting questionns throughout the year
- Dealing with IRD inquiries and reviews
- Pro-Actice Plan vs. End of Year Plan
- Offshore Claim Status
How Can I Keep My Accounting Cost Low?
Lower your expenses by outsourcing the bookkeeping service to our accountants. If you are a SME, we can provide the accounting service on an annual basis. Fees are usually much lower when the company pays annually for the services instead of monthly.
Is Audit a Compulsory Requirement?
Yes. Audit is compulsory in Hong Kong. As per the Companies Ordinance, a Hong Kong company must prepare an audit of the financial statements every year. This is also a mandatory requirement if you intend to claim offshore status. Auditor will express an auditor’s opinion on your company financial statements. You can follow the reporting time at this table. If you need more time to prepare your tax filing, Get Started HK can help to apply for an extension in submitting the profits tax return.
How It Works For Audit?
Frequently Asked Questions
1. When should I prepare my accounting and auditing?
Early preparation is the key! As soon as your financial year end, you shall reserve time for preparation. Although most major tasks are performed by accountants and auditors, you should not underestimate the preparation you need. In order to get an unqualified opinion from the auditor, companies usually prepare earlier with a timeline.
2. How should I keep my accounting record?
To keep accounting record tidy and neat, you are recommended to save and scan all your transaction history, invoices and expense receipts. If you have many transactions each month, you can consider to use an accounting software to sort out information. If you want an adminstrative support, you are also free to send us your physicial documents. We’ve got you covered.
As per section 373 of the Companies Ordinance, a Hong Kong company must keep accounting records for 7 years from the end of the financial year.
3. Is there any accounting software that you recommend?
Xero, Wave, QuickBooks and Freshbook are the user-friendly softwares to keep your records organized. It can help you to store and compare data for analysis.
4. If I have an accounting software, does it mean I can skip the auditing?
An accounting software cannot replace the role of a professional accountant. The Hong Kong Inland Revenue Department will still need a practising accountant to prepare the audited report. If this is your first time setting up a company in Hong Kong, I’d suggest you to consult with our accountants at firstname.lastname@example.org so we can tailor make a cost effective package for your company.
5. Can I omit my accounting cost?
If you are a small business, you can keep accounting costs down by taking care of some financial tasks yourself. For example, you can record your own transactions into the software. However, if your business grows, you will probably need an expert accountant for complex financials tasks and help to comply with different tax rules.
6. I already prepared the accounting by myself. Do I need to get it audited by a HKCPA?
Absolutely yes. Audit is compulsory in Hong Kong, especially you need to audit report to claim the offshore tax exemption status.
7. What is the auditor’s report?
An audit report is usually seen as a check mechanism of director’s work and performance. A Hong Kong Company must appoint an auditor at the first Annual General Meeting. The auditor must prepare an audited financial statement and he should present the report to all directors and members.
In the audited report, the Auditor must give an opinion whether the financial statements provide a true and fair view of the financial position and financial performance of the company as required by section 380 of the Company Ordinance. In general, there are four types of opinion and they can have hugely different implications.
8. Do I need to share the audited report with the Government authority?
If your company is a private limited company, you only have to prepare an audit reports in a simplified format to the IRD. There is no need to submit the report to the Hong Kong Company Registry. In other words, the financial data won’t be disclosed in public record.
9. How much should audit cost a small business?
The measure of the cost of audit is very different to the accounting. The price range depends on your industry and total sales of a company. Though every company is different, it starts at HK$5500 and it includes the following:
- Full set audited financial statements
- Multiple currencies
- Profit Tax Return form submission
- Tax computation submission
- Offshore profit tax exemption status
- Auditing solution with professional HK certified public accountants
If you are currently unsatisfied with your current accountant, reach us and tell us about it!