Tax System in Hong Kong

The tax system under Hong Kong Inland Revenue Ordinance is relatively simple. There are three distinct and separate headings under which tax is levied:

Profits Tax (Current Tax Rate 2015/16: 16.5%)

Corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Hong Kong are chargeable to tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Hong Kong from such trade, profession or business.

Salaries Tax (Current Tax Rate 2015/16: 15%)

In general terms, this tax is imposed on all income arising in or derived from Hong Kong from an office, employment or pension. In deciding whether income “arises in or is derived from Hong Kong”, it is necessary to establish where the employment, for example the source of income, is located.

Property Tax (Current Tax Rate 2015/16: 15%)

Property tax is levied on the owners of real estate which is situated in Hong Kong. A corporation letting property in Hong Kong is regarded as carrying on business in Hong Kong and should be subject to profits tax in respect of its property income.

Tax Representative Service

Our accountants are committed to assist clients to meet Hong Kong tax filing requirements with tax planning and advice to manage the tax affairs of client’s business.

Appoint us as your "Tax Representative" to assist you in dealing with the Hong Kong Inland Revenue Department (HKIRD) in relation to its enquiries, annual filing, investigation and etc.

Service Scope

Annual Tax Filing

Assisted by professional accountants with a perspective view of tax related issues.

Tax Investigation

To handle the query and investigation raised by tax department. This can be resulted in sample check, but most often with certain suspicious in tax department's record. Proper and careful handling is important to avoid and minimize the potential loss and penalty.

Tax Exemption Claim

A characteristic of Hong Kong tax system. Hong Kong adopts territorial concept of taxation. Generally speaking, a Hong Kong company may not be required to pay tax for its income generated outside of Hong Kong with certain proof.

 

 

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