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[Hong Kong] FAQ – Completion of Profits Tax Return

Q: Q1: Is it necessary for a dormant company to prepare audited financial statements before completing the profits tax return?

A: Even if the company is dormant or inactive, the company still has to prepare audited financial statements in support of the return unless it is a dormant company within the terms of the Companies Ordinance.

Q: Q2: Does the Inland Revenue Department accept photocopies of returns, supplementary forms, unsigned auditor's report and unsigned financial statements for return filing purpose?

A: No. Photocopy of tax returns, supplementary forms and uncertified financial statements are not acceptable for return filing purpose.

Q: Q3: If the company's financial statements are prepared in a foreign currency, what exchange rate should the company use for converting the amounts into Hong Kong dollars?

A: The yearly average rate as at the accounts closing date should be used.

Q: Q4: If the amounts shown in the company's financial statements include cents, should the amounts put in the cents when stating them in the profits tax return?

A. No. Cents should be excluded when stating amounts.

Q1: Is it necessary for a dormant company to prepare audited financial statements before completing the profits tax return?

Even if the company is dormant or inactive, the company still has to prepare audited financial statements in support of the return unless it is a dormant company within the terms of the Companies Ordinance.

Q2: Does the Inland Revenue Department accept photocopies of returns, supplementary forms, unsigned auditor's report and unsigned financial statements for return filing purpose?

No. Photocopy of tax returns, supplementary forms and uncertified financial statements are not acceptable for return filing purpose.

Q3: If the company's financial statements are prepared in a foreign currency, what exchange rate should the company use for converting the amounts into Hong Kong dollars?

The yearly average rate as at the accounts closing date should be used.

Q4: If the amounts shown in the company's financial statements include cents, should the amounts put in the cents when stating them in the profits tax return?

No. Cents should be excluded when stating amounts.