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Audit exemption for company with no revenues or profit? - Unique situation -

  1. #11

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    Quote Originally Posted by packy_crusher
    Yes--- we did that and IRD did provide such a letter....and we will never make a profit....so do we still need an audit every year?
    Yes you do. Every single HK Company requires an audit with NO exceptions unless it is in Dormant status.

    The Audit and the Tax return are two completely separate matters albeit you are required to submit one with the other when the IRD do start asking for your tax returns again (which can be randomly any year).
    shri and gigglinggal like this.

  2. #12

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    Think about it - Would be nice if the IRD just took my word for it - "no profit" and said "ok lah we trust you, no need for audit".

    The whole purpose of the audit is to verify your books etc. Can turn into quite a task if you have staff, expense accounts, leases, utility bills, petty cash etc - surely these flow through the HK company / HK banks.

    A large number of SMEs in HK do not make a profit for IRD to tax them.

    Have a GeoExpat related problem - please create a support ticket.

  3. #13

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    numerous companies in Hong Kong will soon find themselves without banking facilities
    The significant controllers register and AEOI are now operational here
    If your bank has not contacted you yet for a mass of vetting information and you have a company account you could be under investigation
    The whole idea behind these initiatives is to clamp down on money laundering and the evasion of tax in the co-signatory AEOI countries
    You have to show the bank and confirm your tax domicile in writing, certified by a local lawyer or accountancy company
    Banks have to start reporting your account data etc to your domiciled country o/s HKG

    Let's see how long before the Mainland starts impounding overpriced black money property and other assets here


  4. #14

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    The Entire US works like that. Audits are only required if the IRS has reason to suspect things are not right....and they do them themselves. The Hong Kong system serves to keep accountants gainfully employed.


  5. #15

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    Cant anybody refer an audit from they have used? Although I still believe its a racket, if you know of a good firm that is reasonable, please let me know.

    Thanks in advance!


  6. #16

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    Ive referred a couple here in the past.

    KTC Prima in TST are very reasonable, or Philip Poon CPA in Wan Chai although I think the latter have a bit of a backlog at the moment


  7. #17

    Join Date
    Mar 2018
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    Cool Permanent pass to skip audits in HK

    Quote Originally Posted by Trebor
    Yes you do. Every single HK Company requires an audit with NO exceptions unless it is in Dormant status.

    The Audit and the Tax return are two completely separate matters albeit you are required to submit one with the other when the IRD do start asking for your tax returns again (which can be randomly any year).
    You can get a temporary pass without audits if your company has no activity. It doesn´t need to be in dormant status, but it cannot have any activity (money in or money out) to temporarily skip audit. However, the year in which the company starts having activity again, it will need to do audit for that year and for the inactive years as well. Good thing is that if the company never resumes activity, it will definitely be exempted from doing audits.

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