Accounting and Audit arrangement

Easway prepares financial statements for customers, arranges audit reports and submits Profit Tax Returns.

Hong Kong Company Registration Services - Easway professional TCSP licensed, fast 7-day company registration, includes government fees, bank account opening assistance, one-stop company establishment service

After company registration, the first profit tax return is usually issued approximately 18 months after the business commences or the company is incorporated as a body corporate.
According to Section 122 of the Hong Kong Companies Ordinance, annual financial statements of Hong Kong limited companies must be audited by a Hong Kong practising accountant for shareholders to review at the annual general meeting (AGM).
Additionally, the Hong Kong Inland Revenue Department also requires limited companies to attach audited financial statements when submitting profit tax returns for tax assessment purposes.

(Information source: Inland Revenue Department)

Easway Accounting Service Advantages

Owned Property Office

Owned property in Kwun Tong, customer documents are secure, service is stable and reliable

Licensed TCSP Professional Institution

Government-approved licensed, accounting services are professional and compliant

Kwun Tong Business Centre Location

Convenient location, easy access for customer visits, improved service efficiency

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Professional Tax Planning Services

Help businesses legally reduce taxes and optimize tax structure

Tax Planning Advantages

As an international financial centre, Hong Kong has a simple and low tax rate system.

Easway

has over 10 years of tax experience, with a professional accounting team providing comprehensive tax planning services for you

Two-Tier Profit Tax Relief

Hong Kong implements a two-tier profit tax system, with a tax rate of only 8.25% on the first HKD 2 million in assessable profits, and 16.5% for the portion exceeding HKD 2 million. We help customers fully utilize this preferential policy

Deductible Expenses Optimization

According to Hong Kong's Tax Ordinance, reasonable business-related expenses are deductible. These include:

Employee salaries and Mandatory Provident Fund contributions
Office rental and management fees
Business-related transportation expenses
Professional service fees (legal, accounting, etc.)
Advertising and promotional expenses
Business-related entertainment expenses (limited)

Accounting Service Process

Easway

provides a standardized accounting service process to ensure service quality and timeliness:

Step 1

Collect Accounting Documents

Collect monthly bank statements, sales invoices, purchase orders, expense receipts and other original documents each month

Step 2

Accounting Processing

Process accounting entries to ensure compliance with Hong Kong Accounting Standards

Step 3

Financial Statements Preparation

Prepare balance sheet, income statement, statement of changes in equity and cash flow statement as of year-end date

Step 4

Audit and Assurance

Conduct audit by Hong Kong practising accountant to ensure financial statements are true and fair

Step 5

Tax Filing

Complete profit tax return form and submit with audit report to Inland Revenue Department before the deadline

Profits Tax Return

Year of Assessment
- A period of one year ending on 31 March in the relevant year of assessment;
- If the accounting year does not end on 31 March, then it refers to the accounting year ending within one year to 31 March in the relevant year of assessment.

Profits Tax Rate
- Applicable to year of assessment 2018/19 and subsequent years:

Corporations
- Assessable profit not exceeding $2,000,000 – 8.25%; and the portion of assessable profit exceeding $2,000,000 – 16.5%
Unincorporated Businesses
- Assessable profit not exceeding $2,000,000 – 7.5%; and the portion of assessable profit exceeding $2,000,000 – 15%

Submission Deadline
- Generally, the profit tax return form should be returned to the Inland Revenue Department within one month from the date of issue. The submission deadline is noted on the first page of the profit tax return form.

Frequently Asked Questions about Tax Filing

Employer's return and notification forms

Usually on the first working day of April each year, the Inland Revenue Department issues the BIR56A form and IR56B form (Employer's Return of Remuneration and Pension Contributions) to employers.

Even if there are no employees subject to salaries tax or long service payment recipients, employers must still return the BIR56A form marked "Nil".

In addition to accounting and tax filing services, we also provide services for preparing and submitting employer's payroll tax returns.

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Combined with the following services, to perfect your financial compliance requirements:

Company Registration Company Secretary Virtual Office

Frequently Asked Questions on Accounting and Tax Filing

Professional answers to your tax questions

When do I need to file my first profit tax return after company registration?

After company registration, the Inland Revenue Department usually issues the first profit tax return approximately 18 months after the business commences or the company is incorporated as a body corporate.
Upon receiving the return, you must submit the audited financial statements and return form within the deadline (usually one month).

How is Hong Kong's two-tier profit tax calculated?

Hong Kong's two-tier profit tax has been in effect since the 2018/19 year of assessment.
For both body corporates and other persons, the tax rate for the first HKD 2 million in assessable profits is 8.25%, and 16.5% for the portion exceeding HKD 2 million.
This measure aims to reduce the tax burden on small and medium-sized enterprises.

What are the accounting service charges?

Accounting service charges are determined based on company size, transaction volume, and business complexity. Generally, small company annual fees are around HKD 5,000-10,000, medium-sized companies HKD 10,000-30,000, and large companies require quotation. Fees include accounting processing, financial statement preparation, audit and tax filing.

Easway Business Centre - Your One-Stop Accounting and Tax Filing Service Expert

Accounting and Audit arrangement

Easway Accounting Service Advantages

Professional Tax Planning Services

Tax Planning Advantages

Two-Tier Profit Tax Relief

Deductible Expenses Optimization

Accounting Service Process

Collect Accounting Documents

Accounting Processing

Financial Statements Preparation

Audit and Assurance

Tax Filing

Profits Tax Return

Year of Assessment

Profits Tax Rate

Submission Deadline

Employer's return and notification forms

Related Services Recommendation

Frequently Asked Questions on Accounting and Tax Filing

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