1st time for company tax return. General questions

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  1. #1

    Join Date
    Apr 2008
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    1st time for company tax return. General questions

    Hi!
    Having a company with my partner for about a year and half, we will need to send the tax return before end of March.
    1st half year : no income at all
    2nd year : small income (with about 10 bank transactions all together)

    Shall we declare it directly to the tax deparment? or do we have to go through an audit/accountant service?
    It would really hurt to pay an accountant to declare such a small income.
    In any case in which case do we have this obligation?

    Cheers!


  2. #2

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    Is it a limited company, or a partnership or a sole proprietorship?


  3. #3

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    As PDLM says, depending on the type of company you have, you may need to have the accounts audited.


  4. #4

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    Apr 2008
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    It's a Limited cny


  5. #5

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    I guess you can prepare the accounts by yourself but will still have to get them audited by an accouting firm in HK.


  6. #6

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    Then I believe you are legally required to have audited accounts, however the rules for tax filing are different depending on whether you gross revenue for the year exceeds HK$500,000. If not then you are deemed to be a "small corporation" and the tax filing is simpler. Details here: Completion of Profits Tax Returns (which includes, at the bottom, guidance on filing without the involvement of an accountant). Since you don't need to submit audited accounts then one might argue that no-one would know if they didn't exist.

    You should also read this on record keeping: Record Keeping

    And this on your required annual returns to the Companies Registry: http://www.cr.gov.hk/en/publications/docs/5-e.pdf


  7. #7

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    Jan 2009
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    The account has to be audited for ltd co.

    I've just submitted my first tax return and paid about HK$15k for account/audit service. But it all depends on the scale of your company. im doing export and not keeping any stock, so the transactions are pretty simple with not much cash transactions involved.

    you may google CPA firms and ask the professionals perhaps


  8. #8

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    Apr 2008
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    Thanks to all of you for your replies,
    I think we will not avoid to get and audit then, as company's turn over is above the minimum mentionned by PDLM.
    Mamamia, it seems we are in a similar situation/field .
    It will break my heart to pay around 15K for about 30mn time spent on our audit

    Cheers!


  9. #9

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    Find a local chinese company and negotiate with them. Many will negotiate a rate which is proportional to the number of transactions.


  10. #10

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    HK$500,000 is hardly "small income"! It's 4 years salary for the average HK resident!


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