With the rapid development of our economy, more and more people have set up their own Hong Kong companies in Hong Kong. However, while enjoying the business convenience brought by Hong Kong companies, people also need to pay more attention to the audit work of Hong Kong companies, because the audit work of Hong Kong companies can directly affect the normal operation of your Hong Kong company.

When a Hong Kong auditor audits a Hong Kong company, he will focus on the Hong Kong company's fees. So today we will focus on an important cost in the audit of companies in Hong Kong -- travel expenses.

When auditing travel expenses, the auditor first examines the authenticity of the expense: that is, the original document on which the expense was claimed. While auditing the authenticity, it will also determine whether the expenses are 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 to the auditor, the Hong Kong Tax Bureau will also focus on this expense of the company. The Hong Kong Tax Bureau will generally send a letter 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 costs 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 and sort out relevant materials for reference, so as to reduce the tax risk of a Hong Kong company.

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