Hong Kong accounting and tax considerations

Tetra Consultants provides Hong Kong accounting and tax service. To ensure your business is compliant with Hong Kong regulations, our accounting team will assist with your business’ annual returns, financial statements, tax compliance, audits and bookkeeping.

Hong Kong accounting and tax service

Many clients engage Tetra Consultants to provide Hong Kong accounting and tax services after Hong Kong company registration. Despite having one of the lowest corporate taxation rates in the world, the jurisdiction is not deemed as an offshore tax haven due to its strict compliance of international standard of reporting. Tetra Consultants will timely complete your firm’s financial statements, annual returns and manage auditors on your behalf and without the need to travel. Contact us to find out more about your tax obligations. Our team of experts will revert within the next 24 hours.

  • For onshore companies, income generated by doing business locally will be subjected to a corporate taxation rate of 16.5%. This rate is one of the lowest in the world.
  • For offshore companies, income generated by doing business outside of Hong Kong will be subjected to no corporate tax. In order to qualify for this, your business needs to be properly structured.
  • According to the Inland Revenue Department, Hong Kong follows a two-tiered profit tax regime. If you require any clarifications, contact us and our tax expert will be in touch with you shortly.
  • All businesses are required to file annual audited financial statements, regardless onshore or offshore.
  • Annual corporate income tax must be filed before 1st April annually. If delayed, penalties will be imposed by the Inland Revenue Department.
  • Each company is free to choose any month end as its accounting year end date however the first accounting period can cover a period no longer than 18 months from the date of incorporation. Once the accounting year end date is chosen then the company must produce its accounts every 12 months using the same accounting year end date.
  • The tax year end in Hong Kong is 31 March and we therefore suggest to clients that they select 31 March for their accounting year end date to coincide with the date when tax returns will be issued by the Hong Kong tax authorities.
  • The Hong Kong Companies Act states that every active company must get its financial statements and accounting records audited by an auditor on an annual basis.
  • Unless your company has applied for a dormant status, you are required by law to file annual return (Form NAR1) with the Companies Registry on the anniversary of its incorporation. The annual return (Form NAR1) details the corporate structure of the company including details of the shareholders, directors and company secretary. Failure to comply with this will result in late penalties and the company directors and shareholders are liable to prosecution and fines. Tetra Consultants will timely and accurately prepare and file the annual return on behalf of our clients.
  • Your Hong Kong company is required to file annual tax return with the Inland Revenue Department within one month from the date of notification. In order to accurately file annual tax return, Tetra Consultants will assist you to prepare and submit balance sheet, auditor’s report, profit and loss account and tax computation.
  • Your Hong Kong company is required to submit a return to the Hong Kong tax authorities before 30 April each year detailing the remuneration paid to your employees during the year to 31 March. If you have paid no remuneration, you are still required to file and inform the government of the same.
  • All Hong Kong Companies are required to keep proper records and accounts of business transactions. Your company must maintain proper records of its financial transactions and retain the source documents, accounting records and schedules, bank statements and any other records of transactions connected with your business.

Contact us now for a free consultation. Our team of experts will revert within the next 24 hours.

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