Audit & Taxation

Auditing and tax returns are a worry for many SMEs. Under section 122 of the Companies Ordinance, Cap. 622, a limited company incorporated in Hong Kong is required to appoint a practising accountant to carry out an annual audit and prepare audited statements for the financial year. The Company is also required to attach the audited financial statements to the profits tax return for tax assessment purposes.

The audit and tax return services provided by Bruin support a wide range of audit requirements. Including statutory audit, internal audit, special purpose audit, innovation and Technology Fund project audit, recognized occupational retirement plan/provident fund audit, science and technology volume audit, brand upgrading and transformation and domestic market expansion special (BUD) fund audit, owners’ corporation audit, charity audit and so on. In addition to meeting the audit needs of SMEs in their daily operations, it also helps smes to easily apply for grants from the Government innovation and Technology Fund, TVP and BUD Fund.

Under the principle of independence, our audit team provides legal audit reports in accordance with the auditing standards for enterprises, and gives audit opinions on the authenticity, fairness and consistency of the financial statements and accounting records of enterprises.

The following details the fees and points to note for your audit and tax services.

Annual trunover (Row) / expenses	$0	Below $500,000	$500,000 to $999,999	$1,000,000 to $1,999,999	$2,000,000 to $2,999,999	$3,000,000 +
Below $100,000	$3,000	$3,800	$4,000	$4,200	$4,500	$4,900 +
$100,000 to $999,999	$3,500	$4,300	$4,500	$4,700	$5,000	$5,300 +
$1,000,000 to $1,999,999	$4,000	$4,800	$5,000	$5,300	$5,500	$5,800 +
$2,000,000 to $3,499,999	$5,000	$5,300	$5,500	$5,800	$6,000	$6,300 +
$3,500,000 to $6,999,999	$5,500	$5,800	$6,000	$6,300	$6,500	$6,800 +
$7,000,000 to $10,000,000	$6,000	$6,300	$6,500	$6,800	$7,000	$7,300 +

The above charges are for reference only. If above HK$10 million, the tax return for individuals starts from HK$1,000

Please contact us by phone or email.

The above prices are for the general price range only. The final quotation will be adjusted according to your actual situation and complexity.

The quotation and payment advice of Bruin Consultancy Limited shall prevail.

Tax advisory Services

The Inland Revenue Department (IRD) issues tax returns to limited companies, sole proprietorships, partnerships, individuals and property owners every year. The tax returns must be completed and returned to irD together with the relevant particulars and documents within 1 to 3 months from the date of issue.

Limited Company Profits Tax

Profits derived from Hong Kong by using Hong Kong company to operate any business or service shall be subject to tax. Conversely, profits derived from overseas sources are not taxable in Hong Kong and are not taxable even if repatriated to Hong Kong. Profits or losses incurred from the sale of capital assets are not taxable.

The Inland Revenue Department requires profitable Hong Kong companies to file annual tax returns together with financial statements audited by certified public accountants of the Hong Kong Institute of Accountants. For the temporary profitability of the company, also required to submit an annual audited accounting report, but the time is not as strict as profitable companies, will be given a certain period of grace. A zero return can be filed if there is no operating company. Once a company is in business, it is required to do books and audits to file taxes. The Inland Revenue Ordinance provides that Hong Kong companies can apply for exemption from profits tax on overseas income.

Profits tax rate

The profits tax rate for sole proprietorship or partnership is 15%

Limited company profits tax rate is 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000.

Per 2025-26 Budget, 100% of the 2024/25 profits tax is waived subject to a ceiling of $1,500 per case.

Declare dutiable goods time

Filing profits tax for the first time

The first profits tax return of the Hong Kong Limited will be issued 18 months after the establishment of the company. It needs to be filed within one month according to the tax form. However, a subsequent notice will tell the company that it is automatically eligible for an extension of two months, meaning that the company will have to file its first profits tax claim within three months.

File profits tax again

For a normally functioning company, the next profits tax return is usually received within one week of April 1 of the year following the initial profits tax filing. For unprofitable companies, within one week after April 1 of the second or third year after the initial return of profits tax.

Time limit for reclaiming profits tax

Upon receipt of the tax form from the Tax bureau, if the company continues or goes out of business, it is required to submit the zero return for profits tax within 1 month. If the company is in business, it needs to apply to the tax bureau for an extension according to whether the company is profitable. The specific grace period for the latest submission of the tax form is roughly as follows

「Consultant and Audit service of “Special Fund for Brand Development, Upgrading and Transformation and Expanding Domestic Market” (BUD)

Bruin Consultant team will assist SMEs to apply for the Hong Kong government’s special fund for brand development, upgrading, transformation and domestic sales and provide audit services.

The SME Export Marketing Fund (EMF)

The SME Export Marketing Fund (EMF) aims to encourage small and medium enterprises (SMEs) to expand their markets outside Hong Kong by providing financial assistance to SMEs for participation in export promotion activities.

Provide funding for projects on a 1 (Government):1 (enterprise/organisation) matching basis

The maximum amount of funding support for each successful application: HK$100,000

The maximum cumulative limit of each enterprise: HK$1,000,000

Target market: markets outside Hong Kong

Application Process: Reimbursement – Enterprises should submit an application for funding support within 60 calendar days after the completion date of the exhibition or business mission