Hong Kong companies have always implemented zero declaration. What will happen if they are found? Are the consequences serious?

Under the condition of meeting the zero declaration tax, Hong Kong companies will make zero declaration according to the regulations, and there will be no hidden dangers. However, if Hong Kong companies illegally file tax returns without meeting the zero declaration conditions and are found out by the Hong Kong Inland Revenue Department, they will face severe punishment:

According to the relevant laws and regulations of Hong Kong, Hong Kong companies need to make annual tax returns after successful registration, and in order to prove the accuracy of the tax data reported in the tax returns, standardized certification materials, namely the audit reports of Hong Kong companies, must also be provided.

If a Hong Kong company submits an "inactive report" when it has actual business dealings, it will be defined as tax fraud and tax evasion, and the Hong Kong Inland Revenue Department will take legal action. The directors of this Hong Kong company will face court prosecution, heavy fines and even detention in serious cases.

Hong Kong companies applying for zero declaration need to meet the following requirements

First, zero tax declaration can only be made if the declaration conditions are met. Otherwise, it is illegal to declare zero tax rate. If it is found by the Hong Kong Inland Revenue Department, it will be fined, and if the circumstances are serious, it will be investigated for criminal responsibility. The zero declaration conditions are as follows:

1. The company has no property or real estate in any form;

2. The company has not opened a bank account, and there is no record of any funds entering or leaving;

3. After the company was incorporated, it did not engage in any business, whether in Hong Kong or overseas.

Second, how to handle the company's zero tax return?

First of all, we need to know the process of making accounts and filing taxes in Hong Kong.

1 is the information needed by the company to sort out accounting and generate financial statements. Accountants will audit the accounts and issue audit reports with audit opinions.

2. After the audit report of the Hong Kong company is issued, you can fill in the tax return form issued by the tax bureau according to the relevant data, and declare the company's operation and the taxes to be paid. And submit the tax return together with the audit report to the Hong Kong Inland Revenue Department for tax declaration and filing.

Here, Hong Kong stipulates that only licensed accountants certified by the Hong Kong Institute of Accountants can audit Hong Kong companies. If the zero declaration condition is met, Hong Kong companies will fill in "zero" in all business columns (including onshore business and offshore business) of the tax return after receiving the annual tax return issued by the Hong Kong Inland Revenue Department, that is, no business occurred in that year, which is officially called "business inactivity report" by the Hong Kong government. After completing the tax return, it must be submitted to the Hong Kong Inland Revenue Department within the specified time to complete the tax return.

If you have any questions about the accounting and tax returns of Hong Kong companies, please contact Hong Kong Credit Company ~