Tax Services

Hong Kong Taxes & Levies

The taxes in Hong Kong only comprised Profits Tax, Salaries Tax and Property Tax. Other levies such as stamp duty and customs tariff are chargeable on certain transactions or commodities only.

Generally, import and export of goods in Hong Kong are not required to pay any customs tariff but customs clearance, except for cigarettes, alcohol and gasoline. Hong Kong does not have sales tax, value-added tax and capital gain tax.

Hong Kong Taxes Filing

Hong Kong is the same as other places, tax filing is the taxpayer’s responsibility and that statutory duty have been specified in Inland Revenue Ordinance (Cap. 112). The taxpayer is responsible and should initiatively notify the Inland Revenue Department (“IRD”) for the taxability rather than replying the IRD when the tax return is issued.

The taxpayer must report the taxability and provide the relevant information accurately and in timely manner.

Tax compliance for running business in Hong Kong

Company and Employer

The most common taxes filing for running business in Hong Kong are Profits Tax and Employer’s Return for reporting the staffs’ salaries and other benefits.

Profits Tax is chargeable on every person who have carrying on trade, profession or business and such business activities have generated assessable profits in or divided from Hong Kong. For the distribution of profits earned by the Hong Kong companies, no dividend tax is chargeable nor report to the authorities is required.

From the year of assessment 2018/19 onwards, company can also apply two-tiered rates for Profits Tax (provided the criteria is met) in order to obtain a lower tax rate.

Employer’s obligations please refer to Corporate Services.Corporate Services 

Investors

Individual investors made long-term investment of real estate for rental income in Hong Kong is subjected to Property Tax. However, if the gain on subsequent disposal of real estate is capital in nature, no capital gain tax will be charged.

Individual and Employee

Any individuals who worked in Hong Kong are subjected to Salaries Tax and those individuals who were just stop-by Hong Kong for business will not subjected to Hong Kong Salaries Tax. Each person’s situation maybe different and the taxability for those persons who worked in multiple countries maybe complicated.

If the relevant individual is subjected to Salaries Tax, the Inland Revenue Ordinance (Cap. 112) has provided a number of tax allowances. If application of tax rules properly, these allowances can effectively reduce the assessable income and further decrease the tax payable by applying the progressive tax rates.

We provide tax compliance and tax planning for both company and individual:

Profits Tax

• Preparing profits tax computation and related schedules
• Acting as tax representative
• Apply tax extension (if applicable)
• Filing Profits Tax Return, audited financial statements and other relevant documents

Individual Tax

• Filing Salaries Tax or Personal Assessment (Combined Individual’s Profits Tax, Salaries Tax and Property Tax)
• Filing Property Tax

Tax consultation and other tax services

• Tax consultation
• 稅務安排/計劃
• Application for offshore claim
• Estimation for taxability
• Application for postponing provisional tax
• Reply tax query, application for extension, application for waiver of penalty, etc.
• Application for objecting tax assessment

Stamp Duty

• Consultation for stamp duty
• 印花稅計劃
• Estimation for stamp duty
• Submission of documents and payment of stamp duty