What documents must I submit with my Hong Kong profits tax return?

If a corporation or partnership business had gross income in the basis period, the return must be accompanied by supporting documents. The IRD's circular lists:

1. A certified copy of the statement of financial position (balance sheet), the auditor's report where Hong Kong or foreign law requires one, or if one has otherwise been prepared, and the statement of comprehensive income (profit and loss account) for the basis period.
2. A tax computation with schedules showing how assessable profits or the adjusted loss were reached from the accounting profit.
3. Other documents specified in the notes to the return.

Schedules the IRD expects to see include: interest expense, any interest claimed as offshore, offshore profits and related expense apportionment, fees paid to related parties, sub-contractor and professional fees, repairs and improvements, bad debts, movements in reserves, asset purchases and sales, and charitable donations.

Format and tidy-up

• Amounts must be in Hong Kong dollars without cents.
• The profit on the return must match the tax computation and be for the current year only (do not net off brought-forward losses on the return).
• A return missing required documents may be treated as invalid.

Whether your company must be audited is a Companies Ordinance question; speak to your auditor rather than assuming an exemption.