Starting from the 2022/23 tax year, the Hong Kong Inland Revenue Department has abolished the exemption for small businesses to submit audited financial Statements when filing for profits tax.

Recently, overseas companies commonly used by Taiwanese business corporations have been gradually subject to regulations. Following the British Virgin Islands (BVI), which began requiring local companies to submit financial statements along with their annual declarations this year, the Hong Kong Inland Revenue Department has abolished the exemption for small businesses to submit audited financial statements when filing for profits tax starting from the 2022/23 tax year.

Liu Zhong-hui, a practicing accountant at KPMG's China Practice Tax and Investment Department, states that for the commonly seen Hong Kong subsidiary companies established by Taiwanese businesses over the years, the deadline for tax filing for the 2022/23 year is August 15th. Regardless of their revenue size, all Hong Kong companies must submit audited financial statements prepared by local practicing accountants when filing for profits tax in the current tax year.

According to Yeung Zhe-Zhi, a partner at KPMG Hong Kong, directors of Hong Kong companies already have the responsibility to prepare annual financial statements and appoint qualified local accountants to audit the financial reports under the regulations of the Companies Ordinance...