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Tel：+86 400 118 5939According to the provisions of the Hong Kong Companies Administration Ordinance and the Tax Administration Ordinance, it is a legal obligation for Hong Kong companies to file taxes. As the most important maintenance work after the establishment of a Hong Kong company, Hong Kong law has also established strict regulations for company tax declaration. If a company fails to comply with Hong Kong law for tax declaration, it will definitely be held legally responsible. However, many business owners are not very clear about the tax reporting time for Hong Kong companies, and sometimes even miss the reporting time, causing unnecessary trouble.
In fact, Hong Kong companies need to handle corresponding tax declaration work every year, and their tax declaration time varies depending on their choice of annual settlement date. However, they still need to handle tax declaration every year. It should be noted that the declaration time may vary slightly depending on the stage of the company, mainly between newly registered Hong Kong companies and Hong Kong companies that have been established for a period of time. as follows:
1. Newly registered Hong Kong company
Newly registered Hong Kong companies must file their first tax return within 18 months from the date of establishment (the Hong Kong Inland Revenue Department will issue the company's tax return). After receiving the tax return, the Hong Kong company must complete the tax filing within 3 months.
2. For Hong Kong companies that have been established for a period of time
For companies that have been established for a period of time, their tax reporting period is 12 months after the first tax filing. Similarly, the Hong Kong Inland Revenue Department will issue tax declaration forms, and Hong Kong companies need to complete the tax declaration work within one month after receiving the tax declaration forms.
Generally speaking, the financial year of a Hong Kong company is 12 months (newly established companies can automatically extend to 18 months in the first year, as it has already been automatically extended for 3 months and cannot apply for an extension), and thereafter, the Hong Kong Inland Revenue Department allows tax returns to be submitted on different year-end dates. As follows:
It is usually recommended to choose the annual settlement date of March 31st or December 31st. The extension of tax reporting can be applied for for for a longer period of time. Hong Kong companies can make specific choices based on their actual situation.
There are two particularly important points about tax reporting for Hong Kong companies that cannot be ignored:
1. Do you not need to file a tax return without receiving it?
Due to various reasons, Hong Kong companies may not receive the profits tax form from the relevant tax bureau. This does not mean that Hong Kong companies do not need to do accounting and tax reporting. They still need to conscientiously complete the tax reporting work within the tax reporting period, otherwise they will be fined by the Hong Kong government for overdue or non tax reporting.
Failure to declare taxes on time will result in receiving a penalty notice from the tax bureau. The notice will indicate that due to the Hong Kong company's tax declaration exceeding the prescribed deadline, a fine ranging from 1200 yuan to 10000 yuan will be imposed, and the tax declaration still needs to be continued. If there is no tax declaration form, it will be considered as overdue tax payment by the tax bureau. In Hong Kong, withholding taxes is a serious illegal act, and the tax bureau will immediately impose a 5% surcharge; If it exceeds 6 months, an additional 10% surcharge will be imposed on the outstanding debt (including the 5% surcharge imposed in the first 6 months). In severe cases, shareholders and directors may be blacklisted, their bank accounts frozen, or their funds deposited into the Hong Kong government treasury, and they may be prosecuted or sentenced by Hong Kong courts. Even if it is not possible to recover overdue taxes through the above channels, the tax bureau can apply to the court for civil litigation and also apply to prevent the departure notice, prohibit the debtor from leaving Hong Kong, and ultimately apply for bankruptcy or liquidation of the debtor.
2. Does Hong Kong company tax reporting have to be handled by a licensed accountant in Hong Kong?
According to relevant regulations, Hong Kong companies need to conduct actual accounting, auditing, and tax reporting if they engage in actual business activities. As for the audit work, it needs to be handled by a third-party professional licensed accountant in Hong Kong.
In summary, after the establishment of a Hong Kong company, it is important to pay attention to the tax reporting time to avoid unnecessary trouble caused by overdue reporting.
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