Changes in tax reporting for HK companies

Dear Colleagues,

We would like to draw your attention to the changes in HK tax legislation which occurred recently. The changes are related to companies’ “no-activity” reporting.

https://www.ird.gov.hk/eng/ppr/archives/23040301.htm

"Starting from this year, all corporations and businesses, regardless of the amount of their gross income and the mode of return filing, must submit their profits tax returns together with all supporting documents (including financial statements and profits tax computations). "

In other words, starting from this year April, if the company claims “no commercial activity” it should provide profit tax return together with Audit report.

Besides, financial statement should include at least all government fees, company secretary charges or registered address charges and other compulsory charges. All these charges occur anyway if they company is not dormant status and even if the company claims “no commercial activity” in profit tax-return.

We as usual recommend all our clients to do accounting base on the HK ordinance.