Accounting, Tax Filing & Audit Services — Fees Fully Disclosed, Handled by Our In-House Accounting Team

Every Hong Kong limited company must prepare financial statements, have them audited by a practising accountant, and submit them together with the Profits Tax Return (BIR51) to the Inland Revenue Department. Alpha’s accounting fee is based on the number of bank transactions ($3,500 for up to 150 transactions), the audit fee is based on annual revenue ($7,000 for revenue up to HK$2 million), and dormant company accounting and audit are $2,500 each — all fees are fully disclosed, with a quote provided before work begins.

Accounting and Audit Fee Overview

Bookkeeping Fees (by Transaction Count)

Dormant/Non-Operating Company

$2,500/year

Up to 150 transactions

$3,500/year

Each additional 100 transactions

+$2,500

Monthly Bookkeeping (up to 30 transactions/month)

$1,200/month

Quarterly Bookkeeping (up to 80 transactions/quarter)

$3,000/quarter

Transaction count is based on entries in bank statements. Receipts can be sent in batches via WhatsApp/email for us to sort and classify — ideal for SMEs without in-house accounting staff.

Audit Fees (by Annual Revenue)

Dormant/Non-Operating Company

$2,500

Annual revenue below $2 million

$7,000

$2–5 million

$9,000

$5–10 million

$15,000

$10–30 million

$22,000

$30–50 million

$30,000

Above $50 million

Please enquire

Audits are issued by our partner practising accounting firms, while Alpha handles compiling your accounts and follows up throughout — you don’t need to liaise with the auditor yourself. Since April 2023, small companies must also submit supporting documents (including the audit report) with their tax return — the era of “nil return” filings is over.

Tax Filing and Tax Services Fees

From company Profits Tax, personal tax returns, and employer’s returns, to responding to IRD enquiry letters and applying for offshore income exemption — all handled by a team with 20 years of tax experience, with a quote provided before work begins.

Profits Tax Return (BIR51/BIR52) preparation

Included with accounting/audit package

Preparation of Profits Tax return

$1,800

Preparation of personal tax return

$1,800

Employer’s Return (BIR56A + IR56B)

$500 (1 employee, +$100 per additional employee)

Responding to IRD enquiry letters

From $3,000 (complex cases $8,000)

Offshore income exemption application

$20,000 per response letter

Tax planning

25% of tax savings achieved

Key Points of Hong Kong's Profits Tax System

Two-Tiered Tax Rates

For limited companies, the first $2 million of assessable profits is taxed at 8.25%, with the remainder at 16.5%; for unlimited companies, the rates are 7.5% and 15%. Each group of connected entities may nominate only one company to enjoy the two-tiered rates.

Territorial Source Principle

Hong Kong only taxes profits sourced in Hong Kong; offshore profits may apply for an offshore exemption, but the burden of proof lies with the taxpayer — best handled by a tax team.

Tax Filing Timeline

Profits Tax returns are generally issued on the first working day of April each year; new companies typically receive their first return about 18 months after incorporation. An extension can be requested through a tax representative, but since audits take time, it’s best to start organising your accounts as early as possible after your financial year-end.

Consequences of Not Filing

Late filing can result in penalties and an estimated assessment, and serious cases can lead to prosecution. Even after receiving an estimated assessment, tax must be paid before an objection can be filed, which can significantly impact cash flow.

Free Assessment

Free Review

Provide your company’s financial year-end date, number of bank statement pages, and approximate transaction volume, and we’ll reply with a fixed quote the same day.

Compiling Your Accounts

Send us your receipts and bank statements, and we’ll prepare the general ledger, profit and loss statement, and balance sheet.

Audit and Tax Filing

We arrange the audit with a practising accountant, then prepare and file the tax return with the IRD upon completion.

Following Up on Assessments

Once you receive your notice of assessment, we’ll check it on your behalf and handle any objections and follow-up if needed.

Bookkeeping, Audit, and Tax Filing — One Team Is All You Need

The company secretary handles statutory filings, while the accounting team compiles your books, arranges the audit with a practising accountant, and prepares the tax return — offshore profits exemption feasibility can also be assessed at the same time — all followed up by Alpha, so you never need to re-explain your company’s background each year.

Accounting and Tax Filing FAQ

How much does accounting and tax filing cost per year for a Hong Kong company?

It depends on transaction volume: a dormant company’s accounting plus audit costs around $5,000; a small operating company (up to 150 transactions, annual revenue up to HK$2 million) costs $3,500 for accounting plus $7,000 for audit, totalling around $10,500, plus tax return preparation. Alpha quotes entirely based on our published price list.

Does a company with no operations still need to file tax returns and be audited?

Yes. As long as the company has not been deregistered, a tax return must be filed every year; since April 2023, small companies must also submit an audit report with the tax return. Alpha’s dormant company package: accounting $2,500 + audit $2,500.

What is a "nil return"? Is it still possible now?

A “nil return” refers to a company claiming no operations to avoid submitting an audit report. Since April 2023, the IRD has required all corporations to submit supporting documents with their tax return; non-operating companies should instead declare “inactive” status and submit the corresponding audit — do not risk a false declaration.

How is the transaction count calculated?

Each entry on a bank statement counts as one transaction. Businesses with many cash sales and invoices but few bank transactions may actually qualify for a lower fee — feel free to send your bank statements for a free quote.

What's the difference between an auditor and an accountant?

Day-to-day bookkeeping and tax filing are handled by our accounting team; the audit report must be issued by a Hong Kong practising accountant (CPA (Practising)). Alpha handles compiling your accounts and communication, while the audit is issued by our partner practising firm — you only need to deal with one team.

What is offshore exemption? Is it worth applying for?

If a company’s profits are sourced outside Hong Kong (e.g. goods don’t pass through Hong Kong, contracts are negotiated and signed offshore), an offshore income exemption from Profits Tax can be applied for with the IRD. Alpha’s fee is $20,000 per response letter — generally only worthwhile for profits in the six figures or above, and we offer a free assessment of your chances first.

What is the Employer's Return (BIR56A)?

Employers must report each employee’s remuneration (IR56B) by early April each year. Alpha’s fee is $500 (including 1 employee), +$100 per additional employee, and this can be handled together with our payroll outsourcing service.