Tax Representative and Taxation Advisory Service
Tax Representative and Taxation Advisory Service
- Filing of Profits Tax Returns-Corporation (B.I.R.51) / Persons Other Than Corporations (B.I.R.52)
- Filing of Tax Return (B.I.R.60)
- Filing of Property Tax Returns (B.I.R.57 / 58)
- Employer’s return of remuneration and pensions
- Notification of remuneration paid to persons other than employees (I.R. 56M)
- Tax calculation
- Reply to IRD’s letter
- Represent clients against the tax assessment
- Represent clients apply for deferment of tax declaration
- Handle the inquiries and investigations from IRD
- Provide tax planning and consulting service
- As a tax representative
| Standard tax filing service | Charged by each time (HKD) |
|---|---|
| Represent to fill in the employer’s return of remuneration and pensions | 180 |
| Represent to fill in Notification of remuneration paid to persons other than employees | 180 |
| Represent to fill in property tax returns | 800 |
| Represent the company to fill in profits tax | 3,800 |
| Other tax services: such as against the tax assessment on behalf of clients, apply for a Tax Return extension | Negotiable |
Tax Q & A
The two-tiered profits tax rates system is currently implemented:
Corporation
- The tax rate for the first 2 million HKD is 8.25%
- After that, profits tax at 16.5%
Sole proprietorship or partnership business
- The two-tiered profits tax rates are 7.5% and 15%.
If the company is not profitable, then no profits tax is required.
Generally will be March 31 or December 31 as the basis period.
The basis period will up to 18 months if the first year to operate.
Generally, import and export goods do not need to pay the duties, only declaration.
Tobacco, alcohol, and gasoline need to pay the duty.
According to Section 379 to 387 of the Hong Kong Companies Ordinance: Directors of a limited company must prepare the financial year’s statutory financial statements. In addition to meeting the tax returns requirements, completing the audit on time also means the directors satisfy the company regulations’ needs.
The limited company is free to choose any time.
Generally, Hong Kong limited companies will usually defend March 31 or December 31 each year as the basis period. Besides, the basis period will be up to 18 months if the first year to operate, limited companies will select an appropriate time as the basis period within 18 months after the establishment.
Need to provide:
- An audit report of the previous year
- Bank statement
- Sales receipts or invoices
- Purchase, machining invoice or receipt
- Expense invoice or receipt
- Purchase or sale of fixed asset’s invoices or receipts Etc.
If one of the tax years has suffered a loss, it can be carried forward and used to offset its profits in subsequent years.
Profits tax is levied based on the actual profits during the tax year. HKIRD will levy the profit tax before the tax year since the gains need to determine until the end of the tax year. So that, the provisional tax will be used to pay the profits tax for that year after the profit assessment of next year.
If the company’s income does not come from Hong Kong, it has not established an office and is recruited in Hong Kong. The profits can be exempted from paying profits tax in this situation, but it needs to apply the claim for offshore income to HKIRD.
Yes
Because the company is established for profit, even in the collection and payment role in Hong Kong, the company needs to do accounting, audit, and tax declaration. Then determine the actual income of the Hong Kong company through accounting the entire collection and payment process.
No
Hong Kong law stipulates that all Hong Kong companies must report their financial status to the HKIRD, whether the business takes place in Hong Kong or another country. If the company’s income does not come from Hong Kong, they should apply for a tax exemption from HKIRD.
Source: Government website
No
