In the audit of a company in Hong Kong, we all know that there are profits to be taxed, so can the loss be offset?
inHong Kong corporate auditWe all know that there are profits to be taxed, so can we offset the loss of tax?
The answer is that you can definitely deduct the profits for later periods.inHong Kong corporate auditIn the current year, the loss can be made up by the taxable income formed in the future, we all know that the domestic enterprise income tax general enterprises have5Years to make up for the period, and high-tech enterprises are currently extended to10Annual recovery period, is there a time limit for loss recovery in Hong Kong?
In Hong Kong, as long as the loss is caused by the company's normal business activities, it can be made up indefinitely, while the loss caused by the abnormal business activities can not be made up. Losses arising from normal business activities refer to the company's normal operating income and operating costs in the current year, and the losses thus incurred can be made up indefinitely with taxable income in subsequent years. On the contrary, if the company has no operating income and only expenses in the current year, then the loss thus incurred cannot be covered by the taxable income in subsequent years, because the Hong Kong Inland Revenue Department considers that the company did not operate normally in the current year.
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