Many haveHong Kong companyEnterprises with mainland companies will find that Hong Kong companies and mainland companies are different in the face of some costs.

For example, in the face of business entertainment expenses, domestic companies generally make an adjustment in the annual corporate income tax settlement, generally based on income5‰Or an amount60%Whichever is lower.

However, when the Hong Kong company makes the audit report in the next year, as long as the business entertainment expenses are actually incurred, they can be fully deducted in the calculation of profits tax.

Therefore, enterprises with mainland companies and Hong Kong companies should have a clear understanding of the tax system of different regions when facing the business entertainment expenses, so as to reasonably avoid taxes and reduce the tax costs of enterprises.

At the same time, it can be seen that Hong Kong companies have a lot of concessions when calculating profits tax in Hong Kong and income tax in mainland China for business entertainment expenses.

Therefore, when doing the audit and tax declaration in Hong Kong, it is necessary to find a professional agency and be familiar with the tax system in Hong Kong and the mainland, so as to reasonably avoid some unnecessary risks in the operation of enterprises.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.