Registering a Hong Kong company has always been an important step for domestic  enterprises to invest and connect with the international market. After the  successful registration of a Hong Kong company, tax planning has always been  an important part of the company's operation and maintenance. Failure to file  taxes in a timely manner will have a significant impact on the Hong Kong company.

According to the latest news from the Hong Kong Inland Revenue Department,  approximately 190000 profit tax returns, 130000 property tax returns, and 310000  employer tax returns for the years 2018-19 were sent out on April 1st. About  2.68 million individual tax returns will be issued on May 2nd, so April and  May are the peak periods for Hong Kong companies to file taxes.

Unpredictable accounting and tax reporting for Hong Kong companies
 The first tax filing time for newly established Hong Kong companies is within    18 months from the date of establishment, and they will receive the tax form    issued by the tax bureau for the first time. After receiving the tax form,    they must complete the tax filing within 3 months.

The tax return for non newly established Hong Kong companies is issued on  April 1st each year. After receiving the profits tax return, the tax reporting  work must be completed within one month.

Zero declaration of Hong Kong companies cannot be misinterpreted

There are three main ways for Hong Kong companies to file taxes, including  zero declaration, consolidated accounting, and offshore exemption; If a company  does not operate in Hong Kong and does not have a company bank account within  a fiscal year, it can apply for zero tax reporting from the government and  can apply for exemption from auditing and bookkeeping. Generally speaking,  zero declaration is only suitable for companies that have never started operating  or have terminated their business and are preparing to close down after their  establishment.

However, many people have misconceptions about zero declaration for Hong Kong  companies. For example, some people believe that offshore operations of Hong  Kong companies can be declared zero, but in fact, whether operating in Hong  Kong or not, they need to submit tax declaration materials to the Hong Kong  Inland Revenue Department. Some people believe that not making zero declaration  would mean paying taxes. If a Hong Kong company meets the conditions for zero  declaration, it is best to apply for zero declaration. If it does not meet  the conditions, it should be audited and reported normally.

What preparations do Hong Kong companies need to make for tax reporting
 Newly registered Hong Kong companies should prepare in advance for their first    accounting and tax reporting, including:

① Opening a corporate bank account: Only by opening a bank account can normal  auditing and tax reporting be carried out. Under the influence of the CRS environment,  Hong Kong bank account opening review is very strict, and Hong Kong bank account  opening needs to be prepared in advance.

② Engraving invoice seal: Generally, invoice seals are engraved when registering  a company;

② Handling the company's invoicing system: There is a difference between the  free invoicing system and the paid invoicing system. The free invoicing system  requires obtaining invoices from the tax bureau.

④ Data organization: Hong Kong companies handle accounting and tax reporting  once a year, but they need to start preparing accounting documents when they  have business operations. There are a lot of documents that need to be submitted  when doing accounting and tax reporting, including monthly statements and receipts,  sales receipts, cost receipts, expense receipts, etc. In addition, the accounting  and auditing personnel platform should do a good job in classifying and organizing  invoices in order to smoothly carry out tax reporting work.

Hong Kong companies are entering a peak period for bookkeeping and tax reporting,  and all Hong Kong companies should make sufficient preparations to avoid tax  delays. Hong Kong companies are expected to incur a certain amount of fines  for tax reporting and still need to continue making tax declarations.