HONG KONG TAXATION

Hong Kong Taxation

Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable here.

Profits Tax Salaries Tax Property Tax Stamp Duty

Taxation Services

A company may arrange auditor assurance for special projects, such as:

  • Providing tax advisory and tax planning
  • Acting as tax representative (individuals or companies)
  • Filling the tax return, tax computation and declaration
  1. Profits tax
  2. Salaries tax
  3. Property tax
  • Applying for the extension of submission of tax return
  • Applying for holdover of provisional tax
  • Assisting for objection of tax assessment
  • Assisting for handling the tax queries from ird Assisting for applying the offshore income claims exemption

Should you have any inquiry about taxation service, please contact us and we will provide FREE consultation service.

CONTACT US

FAQs

1When will the new company receive the tax form?

  • The new company will receive its first profits tax return in the 18th month after its establishment, and the filing period is 3 months.

2If not a new company, when will I receive my tax form?

  • Generally speaking, the Inland Revenue Department will issue a Profits Tax Return in early April each year, and the filing period is 1 month. If the company has appointed a tax representative, the filing deadline will be automatically extended.

3Can the profits of a Hong Kong company offset the losses of the previous year?

  • Losses incurred in a year of assessment may be carried forward and set off against the company's profits in subsequent years.

4What are the restrictions on donation deduction under the Hong Kong Inland Revenue Ordinance?

  • Donations to accredited charities are eligible for deductions. However, the total amount of the required donation must be not less than $100 and not more than 35% of the assessable profits.

5A Hong Kong company only opens a bank account and collects and pays bills for other Chinese companies. Does this Hong Kong company need to do accounting, auditing and tax declaration?

  • Since the company is established for profit, even if the Hong Kong company only collects and pays for others, it should be regarded as an agency service business.

6What is the holdover of provisional profits tax?

  • Profits tax is levied on actual profits for the tax year. Since profits for a year must be determined after the end of the year, provisional tax is levied by the Inland Revenue Department before the end of the year. After the profits of the relevant year are assessed in the following year, the provisional tax paid can be deducted from the profits tax payable for the current year.

7Under what circumstances can a Hong Kong company be exempted from paying profits tax?

  • If the income of the enterprise is not derived from Hong Kong, and the company has not established an office in Hong Kong and recruited Hong Kong employees, the profits earned by it can be exempted from profits tax. However, it is necessary to apply to the Hong Kong Inland Revenue Department for tax exemption of offshore income.