Many entrepreneursRegistered Hong Kong companyOperate international business. If the company has normal operation, it shall entrust Hong Kong certified public accountant to make audit report every year, and fill in profits tax return according to the audit report to complete tax declaration. However, the international market changes, there are prosperous periods, but also depression time, if hit the trough, some Hong Kong companies will choose to suspend business, but the company still retain, after the market situation improves and start the operation of the Hong Kong company again, the suspension time is one year, some may be two to three years, during the suspension, how should the Hong Kong company do the account and tax declaration? Do we need a Hong Kong accountant to make an audit report?

For such Hong Kong companies, there are generally two options:

First, in accordance with the provisions, continue to entrust Hong Kong certified public accountants to complete the accounting and tax declaration work, that is, to link up the annual audit report before the suspension of business, every12I will make an audit report every month, but the financial data during the period of business suspension will show that the company has no income, only the annual inspection of the Hong Kong company, the accounting audit of the Hong Kong company and other expenses. This practice is completely standardized in accordance with the provisions of the tax law of Hong Kong. The disadvantage is that it needs to pay the expenses of accounting audit of the Hong Kong company every year.

The alternative is that during the period of suspension, no audit report is made and the profits tax form is filed as a zero return. After the Hong Kong company restarts operation, it will entrust the Hong Kong accountant to do the accounting and tax declaration, but this audit report should start from the audit report before the shutdown, and the accounting period of the report is likely to exceed12Months, if more12Every month, certified public accountants in Hong Kong will issue a reserved opinion in the audit report. Such reservations relate only to the accounting period of the Hong Kong company. If there is no problem in the accounts of the Hong Kong company, there will be no reservation on the accounts and tax calculation, so it will not affect the future tax declaration of the Hong Kong company.

If your Hong Kong company encounters the situation of outage, the corresponding accounting audit and tax declaration work can refer to the above two schemes.

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