Financial Crime World

Hong Kong Government Announces Changes to Tax Exemptions and Incentives

In a move aimed at supporting Hong Kong businesses, the government has announced changes to its tax exemption and incentive policies. These changes aim to simplify compliance for companies operating in the territory.

Submission of Annual Profit Tax Returns

Companies will be required to submit their annual profit tax returns within one month of receiving a notice from the Inland Revenue Department (IRD). The notice is typically issued on April 1st annually, but may vary depending on the company’s operation schedule. Newly incorporated businesses will receive their first report 18 months after starting operations or incorporation date, while long-time operated businesses will receive theirs on the first working day of April every year.

Audited Financial Statements

All Hong Kong companies are required to prepare audited financial statements, which must include:

  • Statement of financial position
  • Profits and loss
  • Change in equity
  • Cash flows

The deadline for submission varies depending on the company’s fiscal year end date. Newly formed businesses have an 18-month window to submit their first set of financial reports.

Tax Exemption Policy for Income Earned Outside Hong Kong

Companies can apply for tax exemption by submitting a claim offshore form, along with audited financial statements and relevant financial documents. The application process is as follows:

  • 18 months after the company submits its profit tax declaration report for first-time applications
  • Every 12 months thereafter

To assist businesses in complying with these regulations, Global Link Asia Consulting offers a range of services, including:

  • Tax planning and advice
  • Monthly/annual tax accounting
  • Mandatory tax filings

With over 10 years of experience in the field, our team is committed to helping Hong Kong companies navigate the complex regulatory landscape and achieve success.

Contact Us

For more information on how we can help your Hong Kong company fully comply with Hong Kong authority requirements, please contact us at [insert contact information].