Taxation – Profits Tax Returns
After knowing what and how to calculate your limited company or unlimited company’s Profits Tax, it is time to know how and what will be needed for completion of the forms – Profits Tax Returns. It was legislated that all information provided and filled into the profits tax returns should be valid and accurate. Therefore, this might come in handy when you receive this green form later. Or otherwise, you could choose OneStart Business Centre’s taxation service and be free from the stress.
In the Profits Tax Returns form, there are a total of 12 parts you would have to fill in, apart from the declaration and information collection statement. You would have to specify the amount of assessable profits, your tax liability and gross income. If you remember, in the first blog of this series, we explained about the calculation of profits tax. Your provision of these numbers would therefore aid the Department in accurate calculation of your company’s profits tax.
Last week we also covered about the special occasions that you might enjoy an exemption or deduction in your profits tax. But how could the Inland Revenue Department know? Therefore, in the profits tax returns form, there are few parts dedicated to gathering information of your transactions for or with non-residents, your offshore profits, or any other deduction claimed for the specified deductible expenditure. Other financial data like the depreciation allowances, your company’s turnover, closing inventories or even contractor charges, are all required to report.
Only for the 12thpart, there are already more than 20 slots you have to calculate with extra care and report accurately. OneStart Business Centre has been helping our clients to handle their taxation for years, and every year near this tax days our professional team work days-and-nights, in the hope of helping all our clients to make a true and correct return form. Therefore, if you wish to find a reliable hands for help, feel free to contact our consultants!
Except from the tax return forms, there are also documents your have to submit together to the Inland Revenue Department. Starting from 1 April 2019, it is required by the institution that a supplementary form to Profits Tax return have to be filed together with the taxation form. This extra supplementary form is dedicated for reporting information on preferential regimes and tax incentives.
There are also other “Supporting Documents” you would need to file together with the two main forms. There are a little bit differences between the required supporting documents of a limited company and an unlimited company.
Unlimited company would be required to provide:
(1) certified copy of Statement of Financial Position/Balance Sheet and Statement of Comprehensive Income/Profit and Loss Account in respect of the basis period;
(2) a tax computation with supporting schedule showing how the amount of Assessable Profits has been arrived at. However, the Auditor’s Report would not be required for filing as the nature of your company is an unlimited company.
On the other hand, limited companies are required to provide:
(1) a certified copy of Statement of Financial Position/Balance Sheet, Auditor’s Report, and Statement of Comprehensive Income/Profit and Loss Account in respect of the basis period;
(2) a tax computation with supporting schedules showing how the amount of Assessable Profits has been arrived at. The audited financial statements should always be submitted to the Department except if your company is a small corporation or a dormant company.
There is a concession granted to small incorporations and businesses, allowing them to be exempted from the submission of the supporting documents when lodging their returns. Small corporation and business usually don’t have extra budget to find professional accounting agencies to handle their financial status and reports. Therefore, the government does not require standardized audited documents from them. But those documents should still be prepared before completion of the return, because the Department might call for them.
OneStart Business Centre’s professional accounting team has been helping corporations in different business and different sizes for years. Our professional services could be tailored according to your needs across a range of service charges. Apart from the professional taxation consultation service, you could also choose from other packages and enjoy other professional services we could provide, e.g. Virtual Office service. The supporting documents are actually a process in which could help you to arrive at the accurate assessable profits amount. However complicated this might seem to be, OneStart Business Centre could help you deal with it.
Interested in OneStart Business Centre’s Taxation Consultation Services? Phone in to our hotline 3575 6888 or WhatsApp our helpful consultants!