Hong Kong services
Accounting, Audit and Profits Tax Services in Hong Kong
Hong Kong requires audited financial statements in support of the profits tax return, so bookkeeping has to be prepared to audit standard from the start. We maintain the records, brief the auditor and manage the filing timetable.
| Profits tax rate | Two-tiered: 8.25% on the first HK$2m of assessable profits, 16.5% above |
| Consumption tax | None — Hong Kong has no VAT, GST or general sales tax |
| Audit requirement | Mandatory annual audit by an independent Hong Kong CPA practice |
What’s included
- Bookkeeping and management accounts prepared to audit standard
- Audit coordination with an independent Hong Kong CPA practice
- Profits tax computation and return filing
- Employer’s return and payroll administration
- Catch-up work where several years of audits have been missed
Frequently asked questions
Does Hong Kong have GST or VAT?
No. Hong Kong has no VAT, GST or general sales tax of any kind.
Is an audit mandatory for every Hong Kong company?
Yes. Hong Kong requires audited financial statements annually in support of the profits tax return, regardless of the company’s size.
Can my Hong Kong company claim offshore profits and pay no profits tax?
Possibly. Hong Kong’s territorial source basis means profits genuinely arising outside Hong Kong may fall outside the profits tax charge, but the Inland Revenue Department tests this on the facts. We assess the position honestly and build the contemporaneous documentation a claim requires — or tell you it isn’t supportable.