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 HK within that basis period.
There are three 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 carrying on a trade in form of proprietor
or partners and receive income under any employment. He/she may elect for
Personal Assessment in which he/she will have the effect of amalgamating
his/her various incomes in a single assessment.
VALUE-ADDED TAX PLANNING SERVICES
We are specialized in handling offshore tax cases
pertinent to manufacturing and service industries across different tax
jurisdictions. We are confident of and experienced in handling them in the
arrangements construed in the DIPN/s issued by IRD to minimize the tax
obligation of the clients. We use professional knowledge to advise
clients to accomplish the effect of tax-avoidance in the legitimate manner. If
it is successfully held that the profits derived from the operations of both
trading and service business are of 100% offshore nature, they are completely
not subject to Hong Kong Profits tax. Regarding the contract processing
arrangement, it is held that the arrangement falls into 50:50criteria set out
in the DIPN, only 50% of the assessable income is subject to Hong Kong ProfitsTax.
TAX SERVICES
In particular, our taxation services are summarized as follows:
- Answering
the queries issued by the Inland Revenue Department (IRD of HK) on behalf
of clients;
- 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; and
- Hold-over
of provisional profits/salaries/property tax;
- Tax
Planning in respect of profit /estate duty/salaries tax;
- Field
audit;
- Back duty
/ tax investigation
RELATED LINK:
(1) Inland
Revenue Department
