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Where the company is incorporated in a jurisdiction whose laws do not require accounts to be audited and no audit has been performed on the company’s accounts, the IRD would accept unaudited accounts filed in support of the return.

However, if an audit has actually been carried out notwithstanding that there was no such requirement under the laws of the relevant jurisdiction, the audited accounts should be submitted with the return. (Read more: Profit accounting Hong Kong)

Where an offshore company’s head office is outside Hong Kong but it has a branch in Hong Kong, the IRD is generally prepared to accept unaudited branch accounts without the cover of audited world-wide accounts.

However, the assessor may request a copy of the audited world-wide accounts if circumstances warrant.

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