Hongkong Company Formation

Commons problems for accounting and taxation

Commons problems for accounting and taxation

What documents are required for accounting?
 
Transaction type Related backup documents
Sales Sales Invoice, Return Form, Collection Voucher, Payment Record, POS slip
Purchase Purchase Invoice, Daily Record of All money expended, Payment Receipt, Cheque Butts, Bank Account Statement
Other Expense Invoice Received, Payment Receipt, Cheque Butts, Salaries Record 
Bank Transaction Bank Statement, Bank Deposit Slip and Other Charges Record, Cheque Butts or Cheque copy (should includes transaction amount, object and payer’s name) 
Fixed Assets Agreement for Sales and Purchases, Invoice and Receipt, Cheque Butts or Cheque Copy
Stock Depreciation or Low transfer rate Stock, Stock List (includes quantity and value)
Company Investment Stock Bough and sold note, Agreement for Sales and Purchases, Registration Capital Examination Report (China Only)
   
What is the taxation for Hong Kong Corporation?
  Hong Kong Taxation System is simple and clear, which is praise around the world, tax rate and the tax item as a developed area, Hong is almost the lowest and the smallest. Hong Kong Taxation system only covers the transaction take place inside Hong Kong, this means even Hong Kong registered in Hong Kong doing offshore business (no profit made inside Hong Kong), this company does not have to pay any tax to Hong Kong government.

The only tax for Hong Kong Corporation each year is Profit Tax, this mean what the company earn will be taxed, and the rate is 17.5% of the company Net Profit. For examples, if company revenue is 10M, and gross profit is 2M and net profit is 1M. The profit tax of this company will be 1M x 17.5%, which are 175k. If company makes no profit, then it will not have to pay any tax.
   
Is there any tax for Importing and Exporting?
  There is no tax for importing and exporting for all products, but alcoholic and tobacco products. However there is a Declaration Charge for importing and exporting. There are two charge rate, which are 0.5% (value under HK$47,000) and 0.3% (value above HK$47,000).
   
Which department in charge of printing invoice in Hong Kong?
  There is no invoice tax in Hong Kong, no government department in charge of printing invoice. Company can print their invoice according to their own business nature and needs. As long As the company chop is stamped on an invoice or receipts (sometimes may require authorized signature as well) is will be a official document.
   
How to do accounting, auditing and taxation report each year?
  Our company provide all the above service, as long as you give us the required documents, we can help your company to do the accounting, auditing and tax reporting, the service fee will depends on actual workload, we will discuss the fee with you before starting to do the job, we will not start the job without agreement and force you to pay the fee later on.

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