With the economic globalization, more and more people from the mainland set up their own Hong Kong companies in Hong Kong. However, after the mainland people registered in Hong Kong company, they do not understand the company regulations and tax law of Hong Kong company, so they do not know the auditor and tax bureau focus on the project when doing the audit of Hong Kong company.

Here I would like to share an important cost in the audit of a company in Hong Kong -- travel expenses.

When an audit report is made, the auditor first checks the authenticity of the expense: that is, the original document on which the expense was claimed. While auditing the authenticity of the expenses, it will also determine whether the expenses belong to travel expenses. The basis of judgment is whether the person who incurred the expense belongs to the company's internal staff, because only the expense incurred by the company's internal staff can be included in the travel expense. (If the travel expenses incurred by non-staff of the company, such as entertaining customers, shall be included into sales expenses or business entertainment expenses and other related items according to the actual situation).

In addition, the Hong Kong Tax Bureau will also focus on the expense of the company. The Hong Kong Tax Bureau will generally send letters to the company for tax inquiry. In addition to the authenticity and accuracy of the fee, the reasonableness of the fee will also be asked. (Special note: The Hong Kong Revenue Board generally does not ask about the latest1,2Years, but will ask3to4Relevant expenses before the year, so the Hong Kong company needs to do a good job of data preservation)
Therefore, if a Hong Kong company involves a large amount of travel expenses, it must pay enough attention. When the expenses are incurred, relevant information should be prepared in accordance with regulations for the audit and tax bureau to check.

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