Taxation
TAXATION SYSTEM IN HONG KONG - INTRODUCTION
In Hong Kong, taxation is of
territorial basis. In other words, the tax is primarily levied on Hong Kong sourced income as
they are derived from or arisen in Hong Kong within that basis period.
There are three major categories of taxes levied for a year of assessment which
ends on 31 March, 31 December, or whatever date if selected by taxpayer. In
broad term, they are Profits Tax, Salaries Tax and Property Tax respectively.
In other cases, stamp duty would be levied if they fall into the respective
limbs/heads of the particular section of legislation.
To individual taxpayer, if individual carries on a trade in form of proprietor
or partners and receives income under any employment. The taxpayer may elect
for Personal Assessment in which the taxpayer will be entitled to amalgamating
his/her various incomes in a single assessment.
VALUE-ADDED TAX PLANNING SERVICES
We are specialized in handling offshore tax cases
pertinent to trading, manufacturing and service industries across different tax
jurisdictions. We use professional knowledge to advise clients in formulating
their tax planning scheme in more tax-effective manner. We have extensive
experience in assisting clients to handle different tax query issued by IRD. If
it is successfully held that the profits derived from the operations of both
trading and service business are of 100% offshore nature, the assessable
profits derived are completely not subject to Hong Kong Profits tax. In respect
of the contract processing arrangement, if such an arrangement satisfied the
50:50criteria stipulated in the DIPNs is agreed by
IRD, only 50% of the assessable profit would be subject to Hong Kong profits tax.
OTHER TAX SERVICES
In particular, our tax services are summarized as follows:
- Answering
the queries issued by the Inland Revenue Department (IRD of Hong Kong) on
behalf of client;
- Handling
the tax dispute matter by raising objection to CIR or Appeal to the clerk
of BoR on behalf of client;
- Filling
the Employer’s return (BIR 56B) or employment emolument of employee (BIR
56M);
- Property
tax matter;
- Salaries
tax matter;
- Tax matter
in respect of sole proprietorship;
- Tax matter
in respect of partnership;
- Hold-over
of provisional profits/salaries/property tax;
- Tax
Planning in respect of profit /estate duty/salaries tax;
- Field
audit; and
- Back duty
/ tax investigation
RELATED LINK:
(1) Inland
Revenue Department
