Hong Kong Company Audit Services
Hotline: 86-755-82147392 Email：info@citilinkia.com
Statutory audit
Every Hong Kong company is required to keep proper books of accounts which give a “true and fair view” of the company’s financial position. Section 122 of the Companies Ordinance provides that, unless the company concerned is a dormant company, audited accounts must be presented to the members of the company at the Annual General Meeting ("AGM") within a prescribed time limit.
The Inland Revenue Department also requires a limited company to submit a set of audited accounts (and profits tax computation) together with the company’s Profits Tax Return (Form BIR 51) , or submit a set of audited accounts within a certain time frame.
Accounting Services
Bookkeeping
If your company does not have a complete accounts department or do not wish to maintain one, you can subcontract the routine bookkeeping work to us so that you can spend more of your time on managing your business.
With the minimum effort from one or two of your staff, such as gathering a complete set of specified documents as per our document checklist, we can help your company to prepare the accounting records on a monthly, quarterly or yearly basis. Apart from the standard accounting reports (ledger, vouchers, balance sheet, income statement), we can also provide whatever special reports you desire.
Preparing Profits Tax Computation
We usually act as our audit clients’ “Tax Representative” and prepare a document called “Profits Tax Computation” for submission to the Inland Revenue Department ("IRD"). Although the IRD has a format of this document on its website for taxpayers' reference, as far as we know, very few SME taxpayers will prepare the computation themselves because of the complexity of the matters.
It is our job to help clients to observe and comply all tax regulations, obtain the maximum tax benefits and allowances.
Completing Profits Tax Return (Form BIR 51)
A taxpayer who files an “incorrect return” - by omitting or understating anything which the Inland Revenue Ordinance requires to be stated - without “reasonable excuses” commits an offence. The Commissioner of the Inland Revenue Department has the power to levy an assessment of additional tax or prosecuting the taxpayer for such offence.
Taxpayers are advised to contact their tax representatives as soon as they receive any tax returns from the IRD so as to have them prepared and submitted promptly. Late filings may attract a heavy penalty, estimated assessment, or court summons.
Applying for extension
The IRD always requires tax returns to be completed and enquiries answered within a specific period of time, usually from 21 days to 3 months. Late return or reply may be subject to a fine or estimated assessment. In extreme cases, persistent late filing may trigger a tax investigation.
We may apply for a further extension in the capacity of your tax representatives in some cases and advise you on how to deal with some of the IRD’s enquiries.
Objection to assessment
When you receive a notice of assessment (you can tell whether it is a “normal assessment”, “estimated assessment” or “additional assessment” by referring to the small print on the “assessor’s notes” at the back of the notice of assessment) and do not agree to the amount assessed, you must lodge an objection in accordance with section 64 of the Inland Revenue Ordinance within one month after the date of the notice; Otherwise, the assessment will most likely becomes “final and conclusive”, i.e. you have to pay the amount assessed even it turns out that you would not have been liable to tax if a proper objection has been lodged. Sounds harsh? It can be. The IRD may even issue further assessments if you do not lodge any objection at all.
Holdover of provisional tax
Provisional tax is a tax which the IRD assess you or your company needs to pay in the following year of assessment. You can apply for an entire holdover, or a reduction of, the provisional tax under several circumstances, one of which is when the assessable profits for the year of assessment concerned are, or are likely to be, less than 90% of that of the preceding year of assessment.
Similar to objection, a taxpayer is required to apply for a holdover within a period of time after the date of the notice, which is 28 days before the due date for payment of the provisional tax, or 14 days after the date of issue of the notice, whichever is the later.
Replying letters and queries from the IRD promptly
Some enquiries from the IRD are straight forward which taxpayers can simply handle on their own. You should, however, be cautious to those that seems lengthy or may have considerable tax implications such as concerns over capital or revenue nature of property transactions.
Assistance on Employer’s Returns
The IRD will issue Forms B.I.R. 56A and I.R. 56B to employers for filing the remuneration and pensions of their employees. These forms are required to be submitted within one month or penalty will be imposed. The IRD has published comprehensive explanatory note on these two forms.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com