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What Accounting and Tax Services Do Asia-Pacific Businesses Need?

Accounting and tax services cover financial statement preparation, tax planning, annual audits, and compliance filing. Multinational businesses face complex accounting standards, varying tax rates, and differing filing deadlines across markets. Non-compliant filing or bookkeeping errors can result in penalties, interest charges, and back taxes. Corporate tax rates vary significantly (Hong Kong 16.5%, Singapore 17%, China 25%). Galaxy leverages a local tax specialist network to ensure financial accuracy, tax optimisation, and zero compliance risk.

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4 Pillars of Business Financial Compliance

📊 Bookkeeping & Financial Reporting

Daily bookkeeping, voucher review, and consolidated statement preparation under local accounting standards (GAAP, IFRS, or local rules). Ensures financial data is accurate, complete, and disclosure-compliant.

💼 Tax Filing & Planning

Timely filing for corporate income tax, VAT, personal income tax, stamp duty, and more. Tax optimisation aligned with your corporate structure to reduce the effective tax rate and ensure zero penalties.

✅ Audit & Financial Review

Annual external audits, internal control assessments, and special reviews (financing, M&A, compliance investigations). Independent, credible financial opinions to support decision-making and fundraising.

⚖️ Compliance & Risk Management

Transfer pricing compliance, anti-money laundering (AML) reviews, related-party transaction disclosure, and tax audit defence. Proactively identifying risks and building safeguards to protect corporate reputation and interests.

Galaxy Insight

Corporate tax rates across Asia-Pacific vary significantly: Hong Kong 16.5% (net profit basis), Singapore 17%, China 25%, Japan 23.2%. Meanwhile, transfer pricing scrutiny for multinationals is tightening. A well-structured corporate architecture and sound tax planning can legally reduce the tax burden by 10–20%, but must comply with BEPS, CRS and other international rules, or face severe penalties and reputational damage.

5 Key Stages of Accounting & Tax Service

  1. 1

    Initial Assessment & Planning

    Understanding your corporate structure, business model, financial scale, and target markets. Assessing applicable accounting standards, tax risks, and compliance needs to build a customised financial management plan.

  2. 2

    Monthly Bookkeeping & Monitoring

    Collecting financial documents (invoices, receipts, contracts), processing bookkeeping entries, classification, and review. Monthly management accounts issued to monitor costs, profit, and cash flow.

  3. 3

    Quarterly Tax Filing & Optimisation

    Preparing quarterly VAT and income tax filings. Analysing tax trends and recommending lawful optimisation strategies (e.g. R&D deductions, loss carry-forwards, incentive applications).

  4. 4

    Annual Financial Statements & Audit

    Preparing annual financial statements (balance sheet, income statement, cash flow statement, notes), conducting external audits, and submitting regulatory filings to pass annual review.

  5. 5

    Ongoing Compliance & Risk Monitoring

    Year-round monitoring of regulatory changes and their impact on your business. Proactive preparation for tax audits and AML checks to protect corporate interests.

Accounting & Tax Essentials Across Asia-Pacific Markets

🇭🇰 Hong Kong

  • ✓ Accounting Standard: HKFRS (aligned with IFRS)
  • ✓ Corporate Tax: 16.5% (local), 8.25% (non-local profits)
  • ✓ Filing: Annual, 4 months after fiscal year-end
  • ✓ VAT: None
  • ✓ Audit: Mandatory for annual revenue >HK$5M

🇸🇬 Singapore

  • ✓ Accounting Standard: SFRS (aligned with IFRS)
  • ✓ Corporate Tax: 17%
  • ✓ Filing: Annual, 5 months after fiscal year-end
  • ✓ VAT: None
  • ✓ Audit: Mandatory for annual revenue >SGD$5M

🇨🇳 Mainland China

  • ✓ Accounting Standard: China GAAP (converging with IFRS)
  • ✓ Corporate Tax: 25%
  • ✓ Filing: Monthly/quarterly, annual reconciliation
  • ✓ VAT: 13% (standard rate), with input tax credit mechanism
  • ✓ Audit: Mandatory for listed companies and large enterprises

🇯🇵 Japan

  • ✓ Accounting Standard: Japan GAAP (differs from IFRS)
  • ✓ Corporate Tax: 23.2% (national + local)
  • ✓ Filing: Annual, 2 months after fiscal year-end
  • ✓ Consumption Tax: 10% (exclusive of price)
  • ✓ Audit: Required for capital >¥5M or revenue >¥300M

🇹🇼 Taiwan

  • ✓ Accounting Standard: Taiwan GAAP (IFRS-related)
  • ✓ Corporate Tax: 20%
  • ✓ Filing: Annual, 5 months after fiscal year-end
  • ✓ Business Tax: 5% (some services exempt)
  • ✓ Audit: Mandatory for listed companies and companies of certain scale

5 Common Mistakes in Accounting & Tax Management

6 Key Questions About Accounting & Tax Services

Is outsourcing accounting more cost-effective than building an in-house finance department??

For startups and SMEs, outsourcing is typically more cost-effective (monthly fees, no fixed staff costs). However, larger enterprises (100+ employees) with high complexity may benefit from in-house departments. The decision depends on company size, growth rate, and international complexity.

How do we ensure transfer pricing compliance?

Transfer pricing must follow the "arm's length principle" — pricing must match comparable unrelated transactions. Galaxy conducts transfer pricing studies, prepares compliance documentation (such as functional analysis and comparability analysis), and helps you pass tax audits.

What should we do if we face a tax audit?

Galaxy assists with audit preparation, communicates with tax authorities, and resolves disputes. Complete documentation and strong internal controls are your best defence. If risks are identified, we help you file back taxes and apply for penalty relief.

Are there special tax requirements for cross-border e-commerce?

Yes. Cross-border e-commerce involves income classification, VAT, and import-export duties. Different platforms (Amazon, Shopee, Lazada) have different rules. You need platform-specific professional guidance to avoid tax risks.

What are the tax implications of corporate restructuring (M&A, spin-offs)??

Restructuring involves significant tax impacts (income recognition, asset transfer tax, VAT). Galaxy plans your corporate architecture ahead to secure tax incentives (such as restructuring tax exemptions, asset write-downs), potentially reducing transaction costs by 10–30%.

❓ How do you protect data security and privacy?

Galaxy uses enterprise-grade encryption, access controls, and regular audits to protect your financial data. We strictly comply with GDPR and local data protection laws. All client data is stored in isolated systems.

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