Detailed Statement Of Tax Returns After Registration Of Hongkong Company

Profits tax is a tax levied on profits derived from Hongkong for any industry, profession or business in Hongkong.

Profits refer to taxable income and deductible expenses and tax exemption. What is profit from Hongkong can be described as simple, or rather complicated, or even some grey areas.

Does the person operate any industry, profession or business in Hongkong?

This is mainly a matter of fact.

Although in some cases, individual businesses are considered to be operating in Hongkong, even if the person receives profits from Hongkong, it does not necessarily mean that he is doing business here.

Therefore, it is very important to decide whether to run business in Hongkong.

For example, a British manufacturer sells products in Hongkong, and the salesperson who visits Hongkong spends a lot of time in establishing and negotiating products related products.

However, the manufacturer believes that only the business relationship with Hongkong can not be treated as a business in Hongkong, so its profits are not subject to profit tax.

If he sets up a warehouse in Hongkong and employs a resident salesperson, he will most likely be regarded as a business in Hongkong. Therefore, it is necessary to determine whether the Hongkong business will generate profits from Hongkong.

Low tax environment is favorable for development. Hongkong has low tax rate and low taxes. Many international organizations use Hongkong's tax advantages to achieve reasonable tax avoidance. We register in Hongkong, generally only two taxes are required: one is a one-time registered capital printing duty, the tax rate is 1/ 1000, this tax is determined by your actual registered capital, and the other is the profits tax, the tax rate is 16.5%. This kind of tax is calculated according to our actual profit (Chun Li), and the enterprise does not make profits or pay taxes.

Hongkong has no import and export tax except for tobacco and alcohol.

Hongkong's tax policy: the Inland Revenue Department clearly stipulates that the company shall levy tax on a regional basis (not paying any revenue in Hongkong's local income).

Taxation of Hongkong companies: if there is no manufacturing, processing and marketing in Hong Kong, there is no need to pay taxes in Hongkong.

Hongkong company's tax category: profits tax 16.5% (for example, the company does not earn profits without paying taxes).

Trading company tax: offshore trading Hongkong trading company, example: Mainland purchases of goods sold to the United States, goods from Shanghai / Shenzhen and other directly sent to the United States (not through Hongkong warehousing pfer), which is offshore operation without the need to pay taxes in Hongkong;

Invoice of Hongkong company: Hongkong has no unified tax invoice, and the commercial invoice is compiled by the company itself.

(1) to provide the monthly statement (original) of the account opening bank, the monthly statement and correspondence between all the account banks must specify the relative business contents and the number of the documents; each entry and exit payment on the monthly statement must have its corresponding bank payment and payment notice.

(2) if the entry on the monthly statement is sales revenue, please provide sales invoice or collection voucher (receipt issued by the Division), etc. if the item is purchased, it must provide purchase invoices or payment vouchers (receipt issued by the other party, remittance certificate and so on, which can prove the certificate you have paid). If the customer pfers the money, he or she must provide the receipt for the money received by the customer or send the remittance bill to the customer; if the shareholder draws money, please specify that the account must be confirmed after the account is completed.

Each entry and exit must have clear source and direction, and the sales purchase amount is in line with the bank's entry and exit amount.

(3) provide all kinds of expense invoices.

These include:

Office expenses (utilities, telephone, rent, management fees and purchase of office supplies, including rental contracts and receipts for rent).

Operating expenses (registration company costs, advertising fees, freight and express delivery fees, local travel costs, travel expenses, business entertainment fees, etc.)

Wage costs.

One of the categories of taxes in Hongkong is the salaries tax, that is, the personal income tax of employees. When the monthly salary of each employee is not more than HK $10000 yuan and the annual salary is not more than 120000 Hong Kong dollars, it is exempt from personal income tax.

If the employee is not employed, the salary tax is declared zero, that is, the wage cost is zero.

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If you are using cash for various trading activities, please provide various sales and purchasing invoices, and indicate cash pactions to ensure the integrity and accuracy of the notes.

After the establishment of a company in Hongkong, the company has to account for its business. This is the requirement of the Company Ordinance (or company law).

A company can prepare its balance sheet, profit statement (also known as profit and loss statement), general ledger, summons and all original credentials for business.

The company shall then hold a shareholders' meeting within eighteen months after its establishment and submit a nuclear report to its shareholders.

Generally speaking, the Inland Revenue Department will issue the first "profits tax return form" within eighteen months after the establishment of the company. It generally requires the company to complete it in one month and return it to the Inland Revenue Department together with the auditor's report and the profit calculation form.

The late profits tax return will be fined or assessed unless it has been approved by the Inland Revenue Department for delayed declaration.

The Inland Revenue Department will issue a commonly known tax slip to the company on the profit assessment made by the company in the profits tax return, and request that the tax be paid before the appointed date.

If the Inland Revenue Department considers that there is no taxable profit in the tax year, it will not levy taxes on the company.