CORPORATE TAX

According to Section 14 of the Inland Revenue Ordinance, profits derived from trade, profession or business of an individual or corporation engaged in trade, profession or business in Hong Kong are subject to Hong Kong Profits Tax. The Inland Revenue Department generally issues a Profits Tax Return to the company in April each year. The company must file a profit tax return within a specified period of time (usually one month after the date of issue, the first tax return is three months after the date of issue) and be submitted to the tax office together with the audit report for the relevant year. Profits tax returns for newly established companies are generally issued approximately 18 months after the company's inception.

 

The company's tax services include:

- Acting as tax representative

- Handling annual profits tax returns and related matters

- Fill in the profits tax return

- Application for Profits Tax Return Extension

- Profits tax related consultation

- Profits tax against taxation

- Profits tax prepayment suspension application

- Handling employer-reported pay and pension tax returns

- Notification of payment of fees to persons other than employees

- From overseas profits tax exemption application

- Apply for a Limited Tax Resident Certificate

- Taxes related to the sale and purchase of property by the company (stamp tax and profits tax)

- Application for Section 88 of the Inland Revenue Ordinance "Recognized Charities"

- Transfer pricing related taxes

- On-the-spot review by the Inland Revenue Department (Tax Investigation Team)

- General tax letter reply

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INDIVIDUAL TAX

Hong Kong's personal taxes are derived from the following three taxes:

Salaries tax Under section 8(1) of the Inland Revenue Ordinance, where individuals receive salaries or pension income from Hong Kong, their income is subject to Hong Kong salaries tax. Salaries tax is required to be reported in the individual tax return. The individual tax return is issued by the Inland Revenue Department in May each year. The client is required to report the salary or pension income of the previous tax year according to the tax year.

 

Profits tax Profits derived from trading, professional or business in Hong Kong by an individual or an unlimited company are subject to Hong Kong profits tax. For example, in the case of an individual or a proprietor, the profit of its business needs to be reported in the individual tax return. Regardless of the size of the turnover, the tax office will generally require the tax return to be submitted along with the company's management account. The partner company will receive the profits tax return of the partner company in April, and the partner company needs to declare the business income of the previous tax year, together with the company's management account.

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Property tax Individuals or joint holders of properties located in Hong Kong are used for rental purposes and their rental income is subject to Hong Kong property tax (the company's rental income is capitalized to profits tax). If the rental income of the property held in the name of an individual is required to be reported in the individual tax return, the rental income from the jointly held property is reported in the property tax return.

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Personal assessment Personal assessment is not one of the taxes, but a preferential measure provided by the Inland Revenue Department to individuals, giving individuals the right to choose to classify the income of the above three taxes into personal income, thereby reducing the individual's tax burden. This offer will only be given to those who "mainly live in Hong Kong".

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Personal and unlimited company tax services include:

- Acting as a personal tax representative

- Fill in the personal tax return

- Salaries Tax Overseas Income Waiver Application

- Salaries tax prepayment suspension application

- Apply for personal assessment

- Preparation of profits tax return management accounts

- Individual tax on property transactions (stamp tax and profits tax)

- Personal tax advice - General tax letter reply

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Any inquires, please feel free to contact us