How long must an online seller keep business records in Hong Kong?

Anyone carrying on a business in Hong Kong must keep sufficient records to show income and expenses so that assessable profits can be ascertained. The Inland Revenue Ordinance requires those records to be kept for at least seven years after the completion of the transactions they relate to. A company must also keep accounting records for seven years under the Companies Ordinance.

For an online seller, useful records include:

• platform sales reports and payout statements (Shopify, Amazon, HKTVmall and similar);
• payment gateway statements and bank statements;
• supplier invoices, shipping and courier invoices;
• advertising invoices and subscription bills;
• stock records and stock-take sheets; and
• refund and chargeback records.

Platforms can close accounts or limit how far back you can download reports, so export statements regularly. Records can be kept electronically if they can be produced when asked. The IRD can ask for records when it reviews a return, and the normal time limit for raising an assessment is six years after the year of assessment.