04 · Hong Kong Accounting, Audit & Profits Tax
Hong Kong Accounting, Audit & Profits Tax
A Hong Kong company must in principle prepare audited financial statements every year and file its profits tax return on time once issued, even with no income. We organise vouchers and keep the books, work with a Hong Kong CPA on the audit, prepare the tax computation and file the return; offshore claims are assessed on the actual business and evidence, with no promise of the outcome.
Books, audit and profits tax, taken step by step against the deadlines.
- Timeline
- A profits tax return is generally due within one month of issue; through a tax representative the IRD block extension applies (2025/26: paper filing by 31 August 2026 for D code and 30 November 2026 for M code, with later electronic dates; the notice governs).
- Key deliverables
- Financial statements and audit report, Tax computation, among other documents
When you need it.
- 01The first profits tax return arrives (issued about 18 months after incorporation)
- 02One provider for the yearly audit and tax return
- 03Overseas income, and a question of whether an offshore claim is possible
- 04Years of missed accounts and audits that need catching up
What we do.
01
Bookkeeping
Organise vouchers from bank statements, contracts and invoices, and prepare books and financial statements; business records are generally kept for at least 7 years.
02
Audit coordination
Work with a Hong Kong CPA on the annual audit and handle audit queries and supporting documents.
03
Profits tax return
Prepare the tax computation and file the profits tax return (BIR51) with the audited financial statements.
04
Two-tier rates and offshore review
Corporations pay 8.25% on the first HKD 2 million of assessable profits and 16.5% above that; offshore profits and foreign-sourced passive income (FSIE) are assessed on the evidence.
05
Employer’s return
Where there are employees or director’s fees, handle the employer’s return (BIR56A, usually issued on the first working day of April and due within one month).
06
Tax queries
Help answer Inland Revenue queries and prepare supporting documents.
Five stages. Clear progress.
Timeline: A profits tax return is generally due within one month of issue; through a tax representative the IRD block extension applies (2025/26: paper filing by 31 August 2026 for D code and 30 November 2026 for M code, with later electronic dates; the notice governs).
- 01
Collect records
Bank statements, contracts, invoices, prior-year statements and tax notices.
- 02
Books and statements
Organise vouchers and prepare books and draft financial statements.
- 03
Audit
A Hong Kong CPA audits the accounts and issues the audit report.
- 04
Tax computation
Prepare the computation and assess two-tier rates and any offshore or exemption position.
- 05
File and follow up
File within the deadline and follow up on assessments and queries.
04 · Required documents
What you need to provide
- Full-year bank statements
- Sales and purchase contracts and invoices
- Prior-year audited statements and tax computation (if any)
- The tax return or notice issued by the IRD
05 · Deliverables
What you will receive
- Financial statements and audit report
- Tax computation
- Profits tax return filing receipt
Common jurisdictions for this service.
07 · FAQs
Questions about Hong Kong Accounting, Audit & Profits Tax
Generally yes. The company must in principle prepare audited financial statements every year, and once a profits tax return is issued it must be filed even with no income. Only specific cases, such as a company that has lawfully become dormant, are exempt from audit.
Corporations pay 8.25% on the first HKD 2 million of assessable profits and 16.5% above that. Within a group of connected entities only one can use the two-tier rates in a year of assessment, and the choice cannot be revoked for that year.
Hong Kong taxes profits by source, so profits sourced outside Hong Kong can be claimed as offshore, but the IRD reviews the actual business and evidence, including where contracts, logistics, negotiation and signing took place; specified foreign-sourced passive income of multinational group entities falls under the FSIE regime. We assess before filing and do not promise the result.
Without a reasonable excuse, the IRD can impose penalties or additional tax: on prosecution, a fine of up to HKD 10,000 plus up to three times the tax undercharged; additional tax is also capped at three times the tax undercharged. Ordinary late cases usually attract lower rates; three times is not automatic.
This page summarises publicly available regulations for general reference only and does not constitute legal or tax advice. Rules in each jurisdiction may change at any time; please confirm the latest position with an Offshore Isle advisor.
Consult · 预约顾问
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Hong Kong Accounting, Audit & Profits Tax needs.
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An advisor will contact you within 2 business hours. For urgent matters, call us at 400-860-5600。
