inHong Kong corporate audit, losses incurred in the current year may be covered by taxable income generated in subsequent years. But the premise is that the company is in the normal business activities of the loss, can be made up indefinitely, and if the loss is not normal business activities can not be made up.

The following introduces what is the loss generated in normal business activities:

Hong Kong Tax Bureau believes that the company has normal operating income and operating costs in the current year, and the loss formed in the current year can be made up indefinitely with taxable income in the following years. On the contrary, if the company has no operating income and only expenses in the current year, then the loss of the company in the current year cannot be made up by the taxable income in the following years, because the Hong Kong Inland Revenue Department considers that such company did not operate normally in the current year.

In addition to abnormal operations, there is one loss that cannot be covered by taxable income in subsequent years: the company's offshore losses that year. Since offshore income is not subject to profits tax in Hong Kong, losses are not deductible.

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