When does a limited company need to file a tax return? What is the process of filing a tax return?
Many entrepreneurs who have just opened a company do not know much about the time and process of filing tax returns for Hong Kong Limited companies. This topic will shares with you the basic knowledge and concept of filing tax returns for Hong Kong companies!
Do I need to file a tax return in the year of incorporation of a Hong Kong Limited company? When do I need to file a tax return?
When a limited company is set up, there is no need to file a tax return., there is basically nothing more to do after opening a company bank account.
By the end of the first year of incorporation，, the government will require you to file an annual return, and you will also need to renew your Business Registration Certificate (BR). Usually around the 18th month of incorporation, the Inland Revenue Department will send out a tax return form to your company. At this time, you will need to file your first tax return, which is due within 3 months of the tax return being issued. You can choose when you want to file your first tax return, usually from January to December or April to March. Please pay attention! You need to do an audit report, which requires the signature of a certified public accountant before filing your tax return,
After the audit report comes out, some large companies will hold an annual general meeting with the audit report, for example, to decide how much dividends will be paid out this year. After that, the process of filing tax returns will begin (Please note: companies with employees will need to fill out a salary tax form). This process will be repeated every year thereafter.
We've made a video to help you to understand and get a quick overview of what's going on the above :
What is the process of filing a tax return for a Hong Kong Limited company?
The process of filing a tax return for a Limited company is mainly divided into 4 steps.
Step 1:Book-Keeping. You need to keep a list of all your income, expenses and bank statements.
Accounting. After you have kept the slips, you need to organise them, for example in an Excel file, and then hand them over to account staff. The account staff will issue financial reports based on your documents, invoices, bank statements…etc.
Audit. An accountant will help you to verify those financial reports comply with government requirements, and are true…etc. The accountant will issue an audit report based on this information. (If you don't know what an audit is, click here to find out)
Step 4: File your tax return. You need to fill in the tax return, fill in all the data and information, and then submit it to the tax office.
These four steps are the basic process of filing a tax return!
We've made a video to help you to understand and get a quick overview of the process of filing a tax return:
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