Before investing in Hong Kong and SAR region, it is a good idea to familiarise yourself with the tax credits and incentives that are applicable to foreigners. The Hong Kong SAR region is officially known as the Hong Kong Special Administrative Region (SAR) of the People’s Republic of China. It practices a “one country and […]
In Hong Kong, the tax identification number (TIN) is a vital identifier for all taxpayers interacting with the Inland Revenue Department. This unique code is indispensable for both individual tax filing and corporate compliance. Beyond local tax administration, the TIN also plays a significant role in international financial transactions. The “Tax Easy” platform provides a […]
With the growing number of startups in Hong Kong in recent years, many companies inevitably face challenges when filing their first tax return, including how to correctly claim tax benefits and deductions. In April, small and medium-sized enterprises (SMEs) receive profit tax returns from the tax authorities. From July to August, the peak tax filing […]
In Hong Kong, taxpayers can e-file their annual tax returns with the Inland Revenue Department (IRD). Personal tax is sometimes referred to as salary tax and is directed at individual taxpayers. Tax Rates in Hong Kong Hong Kong’s personal tax rates follow a progressive tax rate system and have five tax brackets of 2%, 6%, 10% and 14% […]
Corporations and unincorporated businesses in Hong Kong can pay lower profit tax rates under the two-tier tax rate for the first $2 million of assessable profits. Profit Tax Rates All Hong Kong taxpayers are subject to the same business tax rate for either a corporation or unincorporated business irrespective of their residential status. However, permanent […]
Hong Kong and Mainland China agree on a Comprehensive Arrangement to provide tax relief to income earners working across the border. There are many conditions income earners need to abide for double taxation relief in either Hong Kong or China. One Employment, Two Tax Jurisdiction A double tax treaty is a documentation that is agreed […]
In Hong Kong, expenses incurred for producing profits chargeable to tax and that are not capital in nature are generally categorised as the tax-deductible expenses. There are special rules for deduction of certain expenses (for example, interest expenses) and special tax relief is available for certain capital expenditure for Hong Kong Company. Tax Deductible Expenses for […]
Hong Kong’s Salaries Tax – both corporate and personal salary tax – is among the lowest tax rates in the world. Why is Hong Kong’s tax on salaries is different from many other countries in the world? While it’s corporate tax may be charged at a flat rate, its salaries taxes work differently. Further, Hong Kong’s salaries […]
Under the Inland Revenue Ordinance (Cap. 112), every taxpayer in Hong Kong is required to accurately and timely declare their income. However, individuals may occasionally be subject to tax audits by the Inland Revenue Department for various reasons. This article examines common causes and relevant Hong Kong cases to help readers understand the circumstances of […]
Tax Department Spot Check-10 Key Reasons and Examples of Companies Being Taxed by the Tax Department
As public attention to Hong Kong tax authorities’ random audits continues to grow, many business owners are exploring ways to avoid unnecessary complications during tax filing, thereby reducing the risk of audits. To help companies better understand and address the challenges of tax audits, we have compiled key tax filing considerations. This article will analyze […]