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Accounting and Auditing in Hong Kong

Accounting & Auditing in Hong Kong

Bookkeeping and Accounting services

  • Prepare Company’s financial statements
  • Statement of Financial Position, Income Statement, General Ledger and Cash Flow
  • All accounting information is processed with professional accounting software
  • Clear and well-organized accounts information
  • Effective financial management
  • Accounting fee is calculated based on the number of transactions

Hong Kong Accounting Fee

Amount(Transactions) Fee
Below 30 US$ 370
30 to 59 US$ 420
60 to 99 US$ 480
100 to 119 US$ 510
120 to 199 US$ 630
200 to 249 US$ 830
250 to 349 US$ 1,120
350 to 449 US$ 1,510
450 and Above To be confirmed

Auditing Services

Statutory Audit

  • Perform annual audits complying with Hong Kong Financial Reporting Standards (HKFRSs) or International Financial Reporting Standards (IFRSs)
  • Professional services Firm that stands ahead of its competitors in anticipating future developments
  • Be assured of a top Hong Kong CPA firm undertaking the audit
  • Timely & effectively to make a business decision
  • Highlight potential issues along with solutions
  • Have a peace of mind to remain in 'good standing' with local government and banks
  • Audited accounts are more precise and legitimate
  • Enhance the recognition of the company’s account
  • Auditing fee is calculated based on revenue of your Hong Kong company

Hong Kong Auditing fee

Auditing fee is calculated based on the revenue of your Hong Kong company in a reporting period

Turnover (Million HKD) US$ Estimated Equivalent (*) Fee
Below 0.5 M Below 64,500 US$ 939
0.5 M to 0.74 M 64,500 to 95,999 US$ 1,070
0.75 M to 0.99 M 96,000 to 127,999 US$ 1,280
1 M to  1.49 M 128,000 to 191,999 US$ 1,650
1.5 M to 1.99 M 192,000 to 255,999 US$ 1,810
2 M to 2.99 M 256,000 to 383,999 US$ 2,050
3 M to 3.99 M 384,000 to 511,999 US$ 2,420
4 M to 4.99 M 512,000 to 640,999 US$ 3,450

FAQs FAQs

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.
4. Do I need to do accounting for my offshore company in Hong Kong?

The Government of Hong Kong requires all companies incorporated in Hong Kong must keep financial records of all transactions including profits, revenues, expenses should be documented.

18 months from the date of incorporation, all companies in Hong Kong are required to file their first tax report which consists of accounting and auditing reports. Furthermore, all Hong Kong companies, including Limited Liability, the annual financial statements must be audited by external independent auditors who hold the Certified Public Accountants (CPA) license.

One IBC offers our Accounting & Auditing services to all of our clients who are operating their companies in Hong Kong. Our offered services include:

  1. Coordination and advice for setting up bespoke accounting systems.
  2. Bookkeeping and annual accounts preparation.
  3. Periodic management accounts and reports.
  4. Budget and cash flow preparation and forecasts.
  5. Compliance with Hong Kong Inland Revenue Department (IRD), Securities and Futures Commission (SFC) reporting requirements if any.

For more information, please send us an inquiry via email: [email protected]

5. What are tax exemptions for offshore companies in Hong Kong?

Generally, offshore companies are free from tax liabilities, all foreign-sourced incomes are tax exempted for companies incorporated in Hong Kong. To be qualified for Hong Kong offshore tax exemption, companies need to be assessed by the Inland Revenue Department (IRD) of Hong Kong.

According to IRD, the following are excluded from the assessable profits:

  • dividends received from a corporation which is subject to Hong Kong Profits Tax;
  • amounts already included in the assessable profits of other persons chargeable to Profits Tax;
  • interest on Tax Reserve Certificates;
  • interest on, and any profit made in respect of a bond issued under the Loans Ordinance or the Government Bonds, or an Exchange Fund debt instrument or a Hong Kong dollar-denominated multilateral agency debt instrument;
  • interest income and trading profits derived from long term debt instruments;
  • interest, profits or gains from qualifying debt instruments (issued on or after 1 April 2018) exempted from payment of Profits Tax; and
  • amounts received or accrued of a specified investment scheme by or to one person

If you still want to know more information about tax exemptions for Hong Kong offshore companies, you can contact our consulting team via email: [email protected]

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About Us

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