We all know that Hong Kong is the financial center of Asia,Hong Kong's tax system is characterized by a low tax rate and narrow tax base. Therefore, with the development of economy, more and more people are registering Hong Kong companies, but it should be noted that the audit of Hong Kong companies needs to be handled every year. The audit report issued after the registration of all Hong Kong companies needs to be submitted to the Hong Kong Tax Bureau, and the Hong Kong Tax Bureau will conduct a spot check on the operation of the Hong Kong company based on the report. If the company is selected, it needs to respond to the tax bureau's inquiry.

In our work, we have found a phenomenon that some Hong Kong auditors, in order to facilitate the audit of Hong Kong companies, ask their clients to record all the service income and trade income of Hong Kong companies as sales income. This is a no-no because sales and service is2For different income types, if they are audited together in Hong Kong company, the accounting records will be incorrect, the revenue cost matching will be confused and other problems will be caused. If the Hong Kong company is checked by Hong Kong tax bureau after audit, the corresponding tax risks will be caused.

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.