When will tax filing be required after company successfully registered?
  18 months from company's registration, Inland Revenue Department (IRD) will issue the first Profits taxation return. Subsequent tax returns will be issued on April 1 of every year afterwards.

How can I do the filing of a profits tax return?
  All corporation accounts must be audited by a practising CPA and filed with audit report and tax computations.

When do I pay for the profits tax?
  Assessors from IRD will issue a notice of assessments and Company have to pay according to the payment due dates.

What if I fail to pay for the tax on time?
  A preliminary surcharge of 5% will be levied immediately. An extra of 10% will be posed if tax is still not paid within 6 months. IRD will also take the resort to prosecutions from District Courts in Hong Kong.

Does every single company need to pay tax?
  No necessarily. Yet every company is required to do the tax filing every year. Paying tax or not is subject to assessments from IRD.

In what circumstance that I need to pay the tax?
  Companies are required to pay tax whenever the Company maintains an assessable profit during the year.

What if I fail to do the tax filing?
  A few thousands penalty will be posted. There are also chances to be prosecuted by IRD.

What should I do with the tax return if the Company did not commence business during the year?

The tax return still has to be filed to IRD even the company has not commenced business.

Do I need to file employer's return for every single staff in my Company?
  The situation applies only if the employee is (1) single AND (2) work for your company for the whole year (1/4 - 31/3),AND (3) His annual income does NOT exceed the basis allowance (2012/13: HK$120,000). Otherwise you have to file the employer's return for the staff.

After first tax filing, IRD issue a notice stating may not issue forthcoming return every year. Does it mean that I do not have to prepare accounts in short term?
  The notice does not mean for deferred accounts preparation. It only implies tax filing is not so urgent at the moment. Company still has to prepare for the accounts and notify IRD for issuing tax return in case the company maintains assessable profits in any one year.


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