Nuances of company accounting in Hong Kong 2021

There are some nuances you need to keep in mind when doing accounting for companies in Hong Kong in 2021. Companies in this jurisdiction are required to prepare and file accounts with the appropriate authorities. Businesses are also required to keep financial records. Knowing all the nuances when opening a company in Hong Kong in 2021 will help avoid sanctions.

Peculiarities of accounting

Accounting for companies in Hong Kong 2021 must be kept on a compulsory basis regardless of where the business is registered - in the territory or outside of it. Each year firms are required to be audited and submit accounts that have passed the audit to the fiscal authorities.

Accounting requirements provide for the maintenance of special books that allow accurately reflecting the state of the company's affairs and explaining all transactions. Assets must be recorded. A register of assets and a record of all transactions by the day involving the receipt or spending of funds are required.

If the company specializes in trade, it is required to record the purchased and sold goods with the quantity, value, and information about the participants of the transaction. In addition, invoices are recorded.

All information related to accounting must be kept for at least 7 years from the completion of the transaction. Only persons who have been authorized to do so may keep the books. If the company has subsidiary structures, a consolidated accounting with information on the parent company and structures should be provided.

The nuances of filing a tax report

The results of the audit and the declaration should be filed every year. Although the report is filed once in a 12-month period, the accounts are required to be maintained throughout the period.

The income tax levy is 16.5%. Expenses can be excluded from the base. The standard payroll tax rate is 15%. For more information regarding record keeping, contact our experts at IT-OFFSHORE.