FAQs
Hong Kong accounting questions, answered.
Clear answers to the questions Hong Kong founders and finance teams ask most about bookkeeping, statutory audit, profits tax, payroll and compliance. Hong Kong limited companies face a specific set of rules — annual audits, profits tax returns, employer reporting and record-keeping duties — and getting them wrong is expensive. If your situation is not covered here, get in touch and we will explain how it applies to your business.
Do I need an audit in Hong Kong?
Yes. Every Hong Kong limited company must have its financial statements audited annually by a practising certified public accountant, regardless of turnover and whether or not it traded during the year. The audited accounts are then filed with the Inland Revenue Department alongside the profits tax return.
When are profits tax returns due, and can I get an extension?
Profits tax returns are usually issued in April and are due within one month. Most businesses appoint a tax representative, which extends the filing deadline in line with the accounting year-end. We track every client's deadline and prepare the computation and the return well ahead of it.
What accounting records must a Hong Kong company keep?
You need to keep records of income, expenses, assets and liabilities for at least seven years. That includes bank statements, invoices, receipts and contracts. The records must be accurate enough to show a true and fair view of the company's financial position and to support the tax computation.
How often should bookkeeping be done?
Monthly bookkeeping is best. It keeps bank and payment-platform accounts reconciled, catches errors early, and means management accounts are ready whenever you need them — for a bank, an investor or an audit. Year-end catch-up work costs more and risks missed deductions.
What payroll and MPF obligations do Hong Kong employers have?
Employers must enrol staff in an MPF scheme, make monthly contributions, issue payslips, and file an employer's return of remuneration with the IRD each year. Payroll must also follow the Employment Ordinance on statutory holidays, leave and termination payments.
When should I switch to a professional accountant?
Switch as soon as your transactions outgrow a spreadsheet, or when a filing, audit or bank request starts to feel stressful. A fixed monthly engagement gives you reconciled books, on-time filings and someone who already knows your numbers when deadlines or queries arrive.