Operations — Profits Tax, Invoicing, MPF, FPS
The operating rhythm of a Hong Kong company: invoices carry no tax, but the accounts are audited and profits tax is filed every year; once you hire, MPF is due monthly and the employer's return annually. These six topics cover each obligation.
Two-tier Profits Tax & Returns
Hong Kong two-tier profits tax: 8.25% on the first HK$2 million, 16.5% after, the territorial principle, return timing, loss relief and time limits.
Statutory Audit & Year-end
Every Hong Kong limited company needs an annual audit by a practising CPA. See the year-end timetable, the documents auditors request and common delays.
Invoices & Receipts
Hong Kong has no VAT and no mandatory invoice format. See what to put on invoices and receipts, credit notes, currency, record keeping and late payment terms.
MPF & Payroll
MPF and payroll in Hong Kong: who must join, 5% contributions, the HK$1,500 cap, due dates, wage payment rules and the 2025 offsetting change.
Employer's Return
Hong Kong employer's return: BIR56A issued each April, IR56B for every employee, and IR56E, IR56F and IR56G notifications on hiring, leaving and departure.
Bank Reconciliation
Bank reconciliation for Hong Kong companies: a monthly routine for FPS, transfers and cheques, how to treat reconciling items and what auditors expect to see.
