If you have a business currently in Hong Kong or you are expecting to set one up soon then it is important to realise that you are obliged to comply with the tax laws there no matter what country that you originate from. Failure to follow the tax laws and to be compliant with them can result in financial penalties and in some cases, prison. In order to be tax compliant in Hong Kong you need to submit your returns to the relevant tax authority by certain dates and you must follow the many disclosure rules about your personal and financial circumstances. If they change in any way then this is something that you need to inform the relevant tax authority about.
Submitting your taxes is not as easy and straightforward as many would have you believe and so this is why they use tax and compliance services in Hong Kong. These businesses do not see this additional expense as something that needs to be avoided because it can be a real dilemma submitting your tax reports by yourself because you will be terrified that if you miss something out, that you may be in trouble later. It is important to see investing in tax and compliance services as an investment and not as a cost. If you still have to be sold on the benefits of subcontracting out this type of service then maybe the following benefits of doing so can help you to make a smarter financial decision.
- Less stress & anxiety – If you don’t have to deal personally with all of the paperwork that has to be forwarded to the relevant tax department and you don’t have to think for a moment what does and doesn’t have to be returned, then this will allow you to live a more stress free lifestyle and your anxiety levels will be a lot lower as well which leads to healthy living. Not having to do well on the pressures of submitting tax forms and following the various compliance issues means that you can concentrate more on the core of your business and also spend some quality time with your family members.
- An impartial view – If you try to do your own tax by yourself then you are going to be looking at all of the figures from a biassed point of view and so you may convince yourself that you don’t have to deal with certain compliance obligations only to find out later that you were completely wrong. By using impartial tax and compliance services, they will tell you about how to properly organise your business or financial affairs better so that it can help to reduce the amount of taxation that you might have to pay.
It’s all about timing as well because you do not want to be missing the deadlines for tax submission and tax payments. This could result in a hefty fine and so leaving this kind of thing to an external service provider means that all dates will be met and all figures will be submitted.