The tax system in Hong Kong is simple and the tax rate is low, but the company still needs to declare tax after its establishment. As for how much tax needs to pay or whether to pay it, it is up to the Hong Kong Revenue Bureau to evaluate and estimate.
In Hong Kong, the government will issue a Profit Tax Return Form 18 months after the establishment of the new company. After reporting the tax for the first time, the tax department will issue the new Profit Tax Return Form every April.
There are three ways in dealing with Hong Kong tax reporting issue:
- Zero declaration - suitable for companies which don’t carry on any business and without opening any bank accounts;
- Accounting and tax return filing - suitable for the unlimited company.
- Accounting and Financial auditing for tax return filing - suitable for limited companies which carry on business.
