As a Hong Kong company owner, have you experienced the following scenario:

Annual water flow of tens of millions of dollars, but at the end of the audit because "can not find the invoice", the cost was a large number of excluded, inflated profits, double the tax;

The accounts done by the accountant himself or by the accountant in the Mainland are pointed out by the accountant in Hong Kong during the audit as "not complying with the Hong Kong standards", and the report cannot be issued;

When applying for an offshore exemption for a business that is clearly overseas, the IRS rejected the application due to "disorganization of accounts and incomplete chain of evidence";

Banks suddenly asked to provide audit reports, temporary, a mess of accounts, financing loans were rejected

......

If you've been in a similar situation, this is an article you must read carefully today.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, BVI, the Cayman Islands, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you need.Tel: 16620947137(math.) genusWeChat: Qicaiyingjituan(can be added by direct search)

Why is your Hong Kong company always "paying more tax"?

Hong Kong tax law adopts a "proof of declaration system", the Inland Revenue Department (IRD) defaults that the declared data are true, and in the event of a random check, a complete chain of evidence must be provided to prove the reasonableness of each and every income and expenditure.

The pitfalls that many bosses step into are really just two:

1. Vouchers are missing and costs are not recognized.

Especially for e-commerce and foreign trade companies, common unsupported expenses include:

-1688 Procurement by WeChat transfer, no invoice

-FBM logistics fees paid personally, no billing

-No contracts, no receipts for overseas Netflix commissions

-Platform advertising costs without downloading the official bill

The auditor was unable to validate these costs and had to exclude them for tax purposes, resulting in an inflated book profit and a significant increase in taxes.

2. Using the mainland accounting standards to do Hong Kong accounts, the audit will not be passed

Mainland accounting standards (CAS) and Hong Kong standards (HKFRS/IFRS) are very different in terms of revenue recognition, bad debt provisioning, depreciation calculation, and so on. Even if the accounts are beautifully done, if they are not handled in accordance with Hong Kong standards and signed by a Hong Kong licensed accountant, the report will be invalid in the eyes of the Inland Revenue Department and the bank.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, BVI, the Cayman Islands, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you need.Tel: 16620947137(math.) genusWeChat: Qicaiyingjituan(can be added by direct search)

A real case of missing vouchers and paying 1.23 million dollars more in taxes in one year

We have served a cross-border e-commerce company with an annual water flow of HK$30 million and a true gross margin of about 15% (profit of about $4.5 million).

But because they didn't organize their bills in a standardized way on a daily basis, they were audited at the end of the year:

-Only the cost of 50% can provide compliance credentials

-Remaining 50% costs (e.g., private transfer purchases, unbilled logistics costs) are eliminated

As a result, the tax-recognized profit becomes HK$12 million, and the profits tax payable is as high as HK$1.815 million.

If they are standardized quarterly bookkeeping and complete documentation, the actual profit is $4.5 million and the tax is only $577,500,000.

Overpayment of tax for one year only due to mismanagement of vouchers: HK$1,237,500!

This "wasted money" is enough to pay for several years of professional bookkeeping services.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, BVI, the Cayman Islands, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you need.Tel: 16620947137(math.) genusWeChat: Qicaiyingjituan(can be added by direct search)

Quarterly accounts are not "spending" but "investing to save money."

Many bosses think "just get an accountant to keep the books," but here's the problem:

-Fragmented Bookkeeping ≠ Compliance Audit Preparation

-≠ verifiable chain of evidence.

-Mainland accountant ≠ Knowledge of Hong Kong tax and auditing standards

The value of quarterly accounting is that it helps you to establish "auditable" accounts at the source:

-Quarterly organization with no piling up or loss of bills;

-Categorized and filed in accordance with Hong Kong standards to ensure a smooth year-end audit;

-Identify tax risks in advance to avoid ad hoc remedies and cost spikes;

Pave the way for offshore exemption by building accounts according to IRD audit standards from day one. Many clients think that "if the business is not located in Hong Kong, then it is exempted from tax", but nowadays the Inland Revenue Department's scrutiny is getting stricter and stricter, and the key is to look at the chain of evidence.

Offshore exemptions are likely to be denied if accounts are in disarray, contracts are unclear, and the flow of funds is not clear.

Our quarterly bookkeeping service for Enterprise Finance is ensured by the offshore exemption standard from the first entry:

-Clarity of place of contract signature

-Complete records of business operations

-Clearly traceable financial flows

-Each cost voucher is fully documented

That way when it comes time to apply for the exemption at the end of the year, you can just submit it easily and get through it.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, BVI, the Cayman Islands, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you need.Tel: 16620947137(math.) genusWeChat: Qicaiyingjituan(can be added by direct search)

Why choose Enterprise Cai Ying Hong Kong Company Quarterly Accounting Service?

Quarterly bookkeeping by Enterprise Caiying is not only "bookkeeping", but also builds a compliant, tax-saving and worry-free financial pathway for you:

Know the Hong Kong rules, know your industry better

Enterprise Caiying has its own Hong Kong accounting firm with complete practicing qualifications and strong background support. The core team consists of Hong Kong licensed accountants, international ACCA accountants, finance and tax experts, etc. Not only are they well versed in the HKFRS standards and the review caliber of the Inland Revenue Department, but also have a long history of serving the cross-border e-commerce, trade, and investment sectors, so they know where the pain points of your business are.

Quarterly intervention to prevent problems before they occur

Unlike the end of the year, we will sort out your accounts, file the vouchers and remind you of the risks on a quarterly basis. Let you face the audit or bank inspection at any time have a clear idea, and bid farewell to the "end of the year only to know that the tax paid too much" passive situation.

"Zero-barrier" interface for offshore exemption applications

We prepare your chain of evidence in accordance with the audit requirements for offshore exemptions from day one. When you need to apply, we will directly retrieve clear and complete accounts and documents, which will greatly increase the success rate and help you save the tax that should be saved.

Audit reports are "one-off", saving labor and effort

We deliver not only the books of accounts, but also a complete set of accounts that can be directly used for auditing. Our licensed accountants will help you obtain an "unqualified audit report" to protect your company's credit and financing ability.

Bookkeeping may seem like a cost, but it's a necessary investment to help you close tax loopholes, reduce compliance risk, and guard your profits.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, BVI, the Cayman Islands, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you need.Tel: 16620947137(math.) genusWeChat: Qicaiyingjituan(can be added by direct search)