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Advice needed - Audit and profits tax return for small HK company

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  1. #1

    Join Date
    Jul 2018
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    5

    Advice needed - Audit and profits tax return for small HK company

    I have a small HK registered trading company that had very few transactions in 2017. My company secretary quoted me HKD $15k for accounting, audit, tax representative, tax return filing, and offshore claim for the Jan 1 - Dec 31 2017 financial year.

    This is almost as much as I paid for the first 18 month financial period from mid 2015 - Dec 31, 2016, with 20 times more transactions.I'm trying to figure out a way to get the cost down, but the secretary is not being helpful in this regard. I asked if there is anything I can prepare myself to save cost and I was told there is nothing I can do.

    Here are my questions.

    1. I read some other threads here and hiring a freelancer/moonlighter seems like a good option. In those other threads, the recommendations are usually sent by PM. Could someone send me a PM with a recommendation?

    2. According to my research, the profits tax return is due by May 2 if you prepare it yourself but there is an automatic extension to August 15 if you are "represented". As it is already July and I didn't apply for an extension, I don't think it's possible to do it myself this year. Would the same deadline of August 15 apply if I hire a freelancer/moonlighter to do it? Or does this only apply if my company secretary or another accounting firm does it?

    3. What exactly is involved with the "offshore profits claim"? The HKD $15k quotation from my secretary is including HKD $5k just for the offshore profits claim. As far as I tell, there is no actual claim form for this. It's just a simple matter of ticking the right box on the profits tax return and attaching 1 page showing much much of the revenue and expenses were offshore. Why is it so expensive to make this claim? In my case, it would cost around the same to just pay the tax.

    4. Anything else I should know about if I hiring someone outside of my company secretary to do the profits tax return and audit? Do I need to get the original profits tax return from IRD that is held in their office?

    I realize that I should have looked into this much earlier this year. I appreciate any advice that can be offered.


  2. #2

    Join Date
    Jan 2017
    Posts
    22

    Sorry but all your questions is the exact reason why you pay an expert to do it. They know the answers so you don't have to worry about it and ensure you file everything correctly and on time and not get fined.

    markranson likes this.

  3. #3

    Join Date
    Jul 2018
    Posts
    5
    Quote Originally Posted by TallT
    Sorry but all your questions is the exact reason why you pay an expert to do it. They know the answers so you don't have to worry about it and ensure you file everything correctly and on time and not get fined.
    I agree that I need to pay someone, I'm not trying to get it done for free. I'm just trying to find a way to reduce the cost this year and learn more so I can do the financial reports and profits tax return myself next year and just hire someone for the audit.

  4. #4

    Join Date
    Jul 2018
    Posts
    5

    Here is an update.

    I got 2 PMs both recommending the same accountant. He quoted me HKD $7k to take care of everything, with an additional HKD $3k if the IRD raises a query regarding the offshore claim. Otherwise, no extra charge for that.

    I hired him and saved myself HKD $8k.


  5. #5
    tck
    tck is offline

    Join Date
    Jul 2015
    Posts
    98

    I'm curious about this too! I'm looking for similar services (with no offshore claim) for my fully localised company (board game cafe). Any chance I could take a look at this recommended accountant as well?

    Hopefully he's not too busy with all that apparent high-praise.


  6. #6

    Join Date
    Sep 2008
    Posts
    8

    I am also interested in the contact for the accountant that comes recommended.

    We have been using a local accountant that costs $6.5K for the audit. This is cheap but they get the audit accounts completely wrong and take ages to do it. Don't mind paying a bit extra so long as they don't mess it up.


  7. #7

    Join Date
    Sep 2004
    Posts
    95

    Im interested as well, appreciate if anybody can pm me the contact!


  8. #8

    Join Date
    Feb 2013
    Posts
    2

    Hi,
    Just curios how you found the service of this accountant to be? was it good?
    Can you PM the contact please?
    Thanks!


  9. #9

    Join Date
    Dec 2018
    Posts
    1

    Kindly, somebody PM me the accountant's contact info too. I also need auditing for all these years that I filed NIL profits return for.

    Is it ok if I have the audit done only after I applied for de-registration and when the IRD officially requests it from me? That's so maybe I can avoid the expenses if the IRD does not do an audit. And what percentage is the chance that they will audit a company that applies for deregistration?

    And if I have filed for NIL profits (but have business activity outside Hong Kong like trading US stocks) is it wise to declare in my application that I did not commence business? Thanks in advance.

    Last edited by wilfmer; 07-12-2018 at 02:33 AM. Reason: correction

  10. #10

    Join Date
    Nov 2007
    Location
    Wanchai
    Posts
    3,932
    Quote Originally Posted by wilfmer
    Kindly, somebody PM me the accountant's contact info too. I also need auditing for all these years that I filed NIL profits return for.

    Is it ok if I have the audit done only after I applied for de-registration and when the IRD officially requests it from me? That's so maybe I can avoid the expenses if the IRD does not do an audit. And what percentage is the chance that they will audit a company that applies for deregistration?

    And if I have filed for NIL profits (but have business activity outside Hong Kong like trading US stocks) is it wise to declare in my application that I did not commence business? Thanks in advance.
    The chances are 100% they will request audited accounts before de-registration.

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