Hong Kong Tax Return Filing Services and Business Advisory
Our expert tax advisors offer comprehensive tax and business advisory services for Hong Kong’s tax system. We cover major taxes like profits tax, salaries tax, property tax, and stamp duty, tailoring our services to both corporate and individual clients at every business stage.
We represent our clients during tax audit and investigation initiated by Hong Kong’s tax authorities, effectively resolving any tax disputes.
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How We Work
One-stop Audit and Tax Filing Service
We’ll ensure timely audit of your books and your tax filing. With us, you can concentrate on expanding your business worry-free.
Paperless Approach
Digitalization and access to audit and tax information anytime. We can reduce unnecessary costs and offer potential long-term process enhancements.
Ongoing Support and Guidance
We are always here to provide support and guidance for all your audit and tax return related inquiries.
Talk with our expert, we can help you file tax return and minimalize tax liability.
Start NowWhat We Do
Profit Tax / Corporate Tax
- Two-tiered profits tax regime
- Corporations will be taxed at a rate of 8.25% on their first HK$2 million of assessable profits
- Assessable profits will be taxed at 16.5%
Income Tax / Salary Tax
- Progressive tax rate system from 2 to 17% on net chargeable income
- The maximum effective income tax rate is 15%
Hong Kong Tax Compliance
- Compliance with local tax and accounting rules.
- Lodgment of Hong Kong offshore claim/tax exemption.
Tax Planning and Tax Advisory
- We work closely with you to develop a tax strategy that efficiently meets your tax obligations.
- We aim to minimize costs, mitigate risks, enhance quality, and drive strategic value throughout your business.
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Frequently Answered Questions
Every company is required to submit its Profits Tax Return annually. For newly incorporated company, the first Profits Tax Return is issued 18 months after incorporation. The company will then have 3 months to prepare the accounts and audit report for the initial profits tax filing. Subsequently, the tax return must be filed by the deadline determined by the Company’s Accounting Year End Date.
Furthermore, companies employing staff are required to submit the Employer’s Return of Remuneration & Pensions annually. This report should include the salaries and wages disbursed to employees for each fiscal year (April to March) and is commonly filed in April each year.
The IRD will generally issue the first Profits Tax Return for newly incorporated businesses 18 months after the date of their commencement. However, the IRD may issue a Provisional Profits Tax Return at an earlier date where circumstances warrant.
Upon receipt of a Profits Tax Return, the taxpayer should submit the return along with any required supplementary forms within 1 month from the date of issue. The compliance date of submission for each Profits Tax Return will be specified on page 1 of the Profits Tax Return.
It is possible to obtain an extension to your profits tax returns. To promote electronic filing, small corporations and small partnership businesses can apply for a further extension of 2 weeks after the normal submission date, on the condition that they submit their Profits Tax Returns through the internet. Businesses may also apply for an extension under the Block Extension Scheme. It is recommended to consult the IRD’s official website with the particular extended due dates of Profits Tax Returns.
To the extent that a taxpayer fails to submit their tax return on time, they may be required to pay a penalty or may even face prosecution. A further consequence is that the taxpayer in question may be liable to pay an increased tax. The maximum penalty for non-compliance is HK$10,000 plus treble the amount of tax undercharged.
In situations where taxes have been underpaid, the IRD may impose an additional 5% of the taxable amount as a penalty.
Companies must register for an Employer File Number with the Hong Kong Inland Revenue (IRD). The fiscal year spans is from April 1st to March 31st. While employees have the responsibility of reporting their salary taxes, which vary from 2% to 17%. After filing, the employer should provide 1 copy of the completed form (IR56B/56E/56F/56G/56M) to the employee or person concerned.
Employer’s Returns, also referred to as IR56B forms, are tax filing documents submitted by employers to report income information for employees and directors. These documents include various details such as salaries, bonuses, allowances, deductions, and exemptions. Submission is mandatory by the end of April each year, facilitating tax calculation and ensuring compliance with employee tax obligations.
- Benefits in-kind are non-cash benefits that are provided to employees by their employers such as housing, food, transportation like car and education scholarship. The value of benefits in-kind is taxable to employees, unless they are exempt under the Inland Revenue Ordinance (IRO).
- Share options are a form of equity compensation that give employees the right to buy shares in from company at a relatively lower than market price. The value of share options is taxable to employees when they are exercised, or when they vest and are no longer subject to forfeiture.
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