Tax – Accounting & Auditing - FAQs

+ Hong Kong

1. When do I submit my first audit report to IRD?
If you have formed a HK company, you’ll receive your first Profit Tax Return (PTR) in 18 months after the date of incorporation. Thus you’ll need to well prepare your accounting records and submit your first audit report together with the completed tax return to the IRD.
2. What expenses could be deductible from Assessible Profits?
Generally, all outgoings and expenses, to the extent to which they have been incurred by the taxpayer in the production of chargeable profits, are allowed as deductions.
3. Do I need to audit the accounts if my Hong Kong company is inactive or the turnover is small?
The requirement to audit the accounts of the company is set down by the Companies Ordinance. The Ordinance does not provide any conditions under which no audit is required.

+ United Kingdom

1. When is the deadline for filing the first account?

The first account must be filed in 21 months after registration with Companies House.

2. What are the penalties for keeping inadequate business records?

HMRC may charge a penalty of up to £3,000 per tax year for a failure to keep records or for keeping inadequate records.

3. What is a dormant company?

A company or association may be ‘dormant’ if it’s not doing business (‘trading’) and doesn’t have any other income, for example, investments.

4. Does the dormant company need to file account to Companies House?

Yes. You must file your confirmation statement (previously annual return) and annual accounts with Companies House even if your limited company.

5. Do overseas companies need to send accounting documents to Companies House after registration?

In most cases, overseas companies are required to send accounting documents to Companies House. The accounting documents an overseas company delivers will depend on the following circumstances,

  • whether the company is required to prepare and disclose accounting documents under parent law (the law of the country in which the company is incorporated)
  • if it is required to prepare and disclose accounting documents under parent law is it an EEA company. An EEA company is an overseas company governed by the law of a country or territory in the European Economic Area (EEA)

+ Singapore

1. What is Annual General Meeting (AG?).

An AGM is a mandatory annual meeting of shareholders. At the AGM, your company will present its financial statements (also known as "accounts") before the shareholders (also known as "members") so that they can raise any queries regarding the financial position of the company.

2. Is it necessary to file financial reports in full XBRL format?

All companies incorporated in Singapore which are either limited or unlimited by shares (except exempted companies) are required to file their full set of financial statements in XBRL format according to the recent guidelines released by ACRA (Accounting and Corporate Regulatory Authority) Singapore June 2013.

3. How is XBRL filing useful?

XBRL is an acronym for eXtensible Business Reporting Language. Financial information is converted to XBRL format then, sent to and fro between business entities. Singapore government has mandated it for each Singapore company to file its financial statements only in XBRL format. The analysis of the data, thus, accumulated gives accurate information about the trends in finance.

4. What is the Financial Year End (FYE) of Singapore?

The financial year end (FYE) of Singapore is the end of the fiscal accounting period of a company which is up to 12 months.

5. When AGM is held since the date of incorporation?

Generally, a private limited company is required under the Companies Act (“CA”) to hold its AGM once in every calendar year and not more than 15 months (18 months for a new company from the date of its incorporation).

6. How long Financial statement reports are laid at AGM?

Financial statements no more than 6 months old must be laid at the AGM (section 201 CA) for Private limited companies.

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