Highlights of the Hong Kong Taxation System

  • Territorial concept : only the income/profit you earned in Hong Kong are taxed
  • Allowances include personal, married couple, child, dependent parents, dependent grand parents, dependent sister and brother, self-education expense deduction and homebuyer*s mortgage interest relief.
  • Initial allowance of 60% - 100% on any capital equipment you invested in business
  • Very low personal tax rate as tax is charged only up to a maximum of 15% on your total taxable income
  • Corporate profits tax rate is at 16.5 %

Every individual or company is required under the Inland Revenue Ordinance to report their total income earned during a fiscal year which commences 1 April every year and ends 31 March in the succeeding year. Inland Revenue Department (IRD) which is the only tax authorities in Hong Kong, will issue tax returns to individual taxpayers who have the legal obligations to complete and file them with the IRD within the time specified in the tax return or for a further period provided an extension has been granted by the IRD.

IRD can exercise powers conferred to it by the Inland Revenue Ordinance to prosecute those taxpayers who fail to complete the tax returns and submit them in compliance with the Inland Revenue Ordinance.

Taxation

  • Preparation of profits tax computation
  • Filing of tax returns for corporations, sole proprietors and partnership business
  • Tax planning to minimise tax liability
  • Handling of tax appeals and objections
  • Assistance with investigations and queries by the Inland Revenue Department