Startupr can introduce you to an accounting & auditing company. Here is an example of one of our client’s request & reply of a CPA firm.
1/ Yes, if all your business transactions (sales and purchase/ services) were negotiated and concluded outside HK; goods shipped not via Hong Kong, your company may apply offshore claim. IRD, the HK tax authority will send you a offshore tax queries letter (approx. 3-5 pages) and you required to reply with supporting documents such as your passport record, sample of full set of sales and purchase invoice and bill of lading, contract as well as relevant email correspondences. Once IRD approved your company is offshore, the company’s profit is not subject to HK profits tax.
2/ Yes, we shall provide you the book keeping, auditing and taxation services as well as the professional service for answering the offshore tax queries as mentioned in point 1.
If you use our services, generally you are required to provide us all bank statements, sales and purchase/ service invoices, all agreement and expenditure invoices/receipts. We shall then generate the management accounts for your approval before auditing.
3/ HK profit tax is calculated by 16.5% on the assessable profits for the year (e.g. year 2013/14) and on top there is provisional tax for next year(2014/15) by 16.5% on the assessable profit year 2013/14, that’s mean pay double.
However, as mentioned in point 1, if your company is approved offshore company, the profit is not subject to HK profits tax.
4/ I don’t understand well your question, would you please advise in details.
Before the engagement, there are some information that we would like to confirm with you as follows:
- Your company is incorporated on 7/12/2009, your first audit and tax filing should be completed;
- If, please provide copies of the latest audited financial statements, tax return and tax assessments for our reference;
- How many transactions per year the company has during the period from the latest reporting period up to this financial year ended 31/3/2014 or 31/12/2013?
Once we received your documents & information, we shall then send you our fee quotation.