.png)
Accounting and Auditing .
According to the Hong Kong Companies Ordinance, all limited companies registered and operating business in Hong Kong are required to submit the company's accounting accounts to an auditor before filing a tax return every financial year. Starting from 2023, the Inland Revenue Department will strictly implement the requirements for submitting audit reports. Companies, including operating or non-operating companies, need to submit the audit report and profits tax calculation form together with the tax return.
Satori & Co. provides one-stop accounting and auditing services to meet the company's development and accounting needs, helping company operators to concentrate on operating, managing and planning their business.
Accounting and Auditing Services
Our services include:
> Monthly operating account
> Organize accounting documents, computerize accounting and archive in chronological order
> Annual audit report including profit and loss statement and balance sheet
Tax filing services
Satori & Co. also assists in handling Hong Kong tax regulations. Services include:
> Taxation consultation for individuals, unlimited companies or limited companies
> Fill out the relevant company's income tax return on behalf of the company
> Assessable profit calculation table and other schedules
> Fill out the employer's employee salary and pension tax return
> Apply for an extension to file your tax return
Frequently Asked Questions .
Limited Company Accounting and Auditing Issues
01
Why do we need an audit report?
02
When should the audit report be prepared?
By preparing a complete audit report early, the company's tax filing process will be more efficient and save the company unnecessary administrative costs. The following are other common uses of audit reports:
> Increase investors’ confidence in the financial situation and protect the interests of shareholders;
> Improve management quality to ensure compliance and transparency in business management and financial operations;
> For tax filing every fiscal year
> Apply for government subsidies or bank loans
Generally, a newly established company will issue its first profit tax return about 18 months after the new business starts or is incorporated. In the future, the tax return must be completed within the fiscal year end date of each fiscal year. The tax return deadline is usually within one month of receiving the tax return, and the profit tax return is issued on the first working day of April each year.
03
Can I prepare the accounting and audit reports myself?
If you have accounting and tax knowledge and are able to prepare clear statements such as profit and loss statements, balance sheets and general ledgers, you may consider handling the company's business administrator accounts yourself. However, according to Hong Kong law, all Hong Kong limited companies must submit their financial statements to auditors for audit before submitting profit tax returns.
04
What are the consequences of not completing the audit report on time?
Late or incorrect filing of the Profits Tax Return may result in further enquiries from the IRD and penalties. The IRD will impose a surcharge on overdue taxes, currently a 5% surcharge on the total amount of tax owed, with the second instalment being deemed due immediately. If the tax is still not paid within six months of the tax payment date, the IRD will impose a further 10% surcharge.
