What is Hong Kong Statutory Audit & Tax Filing?
Statutory Audit and Tax Return filing are mandatory compliance requirements under the Hong Kong Companies Ordinance (Cap. 622) and Inland Revenue Ordinance (Cap. 112). An audit involves an independent examination of financial statements by a Certified Public Accountant (CPA), while tax filing requires submitting Profits Tax Returns to the Inland Revenue Department (IRD). These processes ensure financial transparency, validate taxable profits under Hong Kong’s territorial tax system (taxing only Hong Kong-sourced income), and maintain corporate good standing. Non-compliance risks penalties up to HK$50,000 and operational restrictions.
Why Are Audit & Tax Filing Required in Hong Kong?
These obligations serve critical business and regulatory purposes:
- Legal Mandate:All active companies (excluding qualifying dormant companies under Section 447) must undergo annual CPA audits and file IRD returns.
- Penalty Avoidance:Late/non-filing incurs fines (HK$10,000+), prosecution, and estimated tax assessments.
- Stakeholder Confidence:Audited statements enhance credibility with banks, investors, and partners.
- Tax Compliance:Determines accurate profits tax liability (8.25% on first HK$2M assessable profits; 16.5% thereafter).
- Operational Continuity:Essential for maintaining business licenses, banking facilities, and director protections.
What Services Do We Provide?
Our CPA-led solutions cover end-to-end compliance:
- Statutory Financial Audit:
- HKICPA-registered CPA examination of financial statements
- Verification of accounting records per Hong Kong Financial Reporting Standards (HKFRS)
- Audit report issuance for Companies Registry submission
- Profits Tax Return (PTR) Filing:
- Preparation and submission of Form BIR51 to IRD
- Tax computation under territorial source principle
- Tax planning advisory to optimize liabilities
- Employer’s Return (IR56B) Handling:
- Annual employee compensation reporting to IRD
- Dormant Company Certification:Qualification assessment under Section 447
- IRD Dispute Representation:Handling tax queries, audits, and penalty appeals
Who Must Comply with These Requirements?
This service is essential for:
- All Active Hong Kong Companies:Private/public limited companies
- Foreign Companies:With Hong Kong branch offices or sourced income
- SMEs & Startups:Regardless of revenue level
- Groups & Subsidiaries:Including complex multi-entity structures
- Companies Seeking:Bank financing, investor funding, or M&A readiness
What Documents Are Required?
To initiate the process, companies must provide:
- Complete accounting records (general ledger, bank statements)
- Invoices, receipts, and expense vouchers
- Payroll records and MPF contribution proofs
- Asset registers and depreciation schedules
- Prior-year tax assessments and filings
- Shareholder/director listings and company structure charts
Who Conducts the Audit & Tax Filing?
Our compliance team features:
- HKICPA-Registered CPAs:With 20+ years specialized in Hong Kong audits
- Tax Advisors:Experts in Inland Revenue Ordinance interpretations
- Compliance Managers:Overseeing deadline tracking and document workflows
- Dedicated Case Officers:Providing multilingual support (English/Cantonese/Mandarin)
What Are the Key Benefits?
- 100% Compliance Guarantee:Zero penalty record across 10,000+ annual client filings
- Speed & Efficiency:98% on-time submission rate with urgent 48-hour turnaround options
- Cost Optimization:Average tax savings of 15-30% through proactive planning
- Risk Mitigation:Proactive resolution of 95% of IRD queries pre-assessment
- Strategic Insights:Benchmarking reports and financial health analytics
- Stakeholder Confidence:Audit reports accepted by all major Hong Kong banks
Ensure Seamless Financial Compliance Today!
Leverage our HKICPA-certified expertise for audit and tax filing precision.
[Request a Compliance Proposal]
