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All consultants are qualified Hong Kong company accountants and tax advisors.
Tax Services We Offer:
Tax Representative
Handling all types of tax administration, including but not limited to:
- Profit Tax Return
- Individual Tax Return
- Employers' Returns
- Holdover of Provisional Tax
- Objection and Appeal to tax assessment
Tax Planning
Corporate and Individuals tax planning for optimization strategy
- Study of the best tax scenario
- Maximise the tax saving
- Tax structuring plan
- International tax risk assessment
Offshore Claim
We are experienced CPA for offshore claim areas, we help on
- Offshore claim feasibility study
- Offshore claim structuring and planning
- Solving offshore investigation from HKIRD
Hong Kong Tax Highlights
Hong Kong Tax Highlights
On the first HK $2M net profit
0
%
Capital gains
0
%
VAT
0
%
Offshore profits
0
%
Book Your Free Consultation With One Of Our Experts:
All consultants are qualified Hong Kong company accountants and tax advisors.
All consultants are qualified Hong Kong company accountants and tax advisors.
Advantages Of The Hong Kong Tax System
These are the main reasons so many businesses incorporate in Hong Kong.
No Tax On Foreign-Sourced Income
Businesses operating in Hong Kong only pay tax on income earned in Hong Kong which is a great advantage if your company trades internationally. Even if you do make some sales in Hong Kong the rate is low at 8.25% on profits up to $2,000,000 HKD, and 16.5% on any part of profits over $2,000,000 HKD.
Capital Gains Tax Exempt
Hong Kong does not tax capital gains, giving businesses an extra benefit. This means that businesses can sell their assets without having to pay taxes as long as they are not assets sourced from Hong Kong.
No VAT/GST
Hong Kong does not have a value-added tax (VAT) or goods and services tax (GST), which can help lower the cost of doing business. This means that companies do not have to charge VAT/GST on their products or services and do not have to pay VAT/GST on their purchases. This can result in significant cost savings for companies.
No Withholding Tax
In Hong Kong, companies can receive dividends, interest, or royalties from foreign companies without paying withholding tax.
Tax Exemptions
Certain types of enterprises, such as those involved in research and development or operating in specific specified regions, are eligible for tax exemptions in Hong Kong. This can drastically lower your tax obligations so is well worth checking if you are eligible.
Double Taxation Agreements
Hong Kong has DTAs with numerous nations that can assist businesses in avoiding double taxation. By awarding credits for taxes paid in the other country, DTAs protect businesses from being taxed twice on the same income. If your company operates internationally you may find this useful since it can reduce your overall tax burden.
FAQ of Hong Kong Taxation
Under territorial concept, only income arising in or derived from sources in Hong Kong is subject to tax. In other words, any income or profit derived from a source outside Hong Kong is NOT subject to tax in Hong Kong
Common examples of business where the profits derived by a Hong Kong company may be treated as offshore sourced and non-taxable in Hong Kong:
- Online Trading Business
- Consultancy Service
- Web-marketing
- Overseas Rental
The application itself is easy and free of charge, i.e. just tick a box in the profit tax return. The complexity comes on the reviewing and investigation stages.
The HKIRD will do the investigation usually by sending the company with a list of queries asking around the company’s operation cycle and asking for detailed information of the transactions. And to reply to these queries, you should need help from the tax professionals.
The company must be able to prove its business is free from Hong Kong elements, e.g.
- No Hong Kong Customers
- No Hong Kong Suppliers
- No Hong Kong Office and Staffs
The HKIRD will normally issue the 1st profit tax return to the company after 18 months of its incorporation date.
- Normal Filing Time
- Extension with tax representative under Block Extension Scheme:-
| Accounting Date | Extended Due Date |
|---|---|
| (Year ended 30 April to 30 November) | No extension (End of April) |
| (Year ended 31 December) | 15 August |
| (Year ended 31 March) | 15 November |
| (Year ended 31 March, with current year loss) | 31 January |
The company has to file a complete set of returns which includes the following:
- The specific profits tax return form as issued by the Inland Revenue Department
- A supplementary form as issued by the Inland Revenue Department for your tax data and financial data etc.
- A certified copy of the Balance Sheet, Auditor’s Report and Profit & Loss Account for the year of assessment.
- A tax computation of Assessable Profits (or Adjusted Loss).
8.25% on the 1st HK$2M and 16.5% onward
0% on capital gain
0% VAT / Sales tax
0% under offshore claim.
Additional Services
Reachtop KSHK provides a range of services in addition to Hong Kong Company Formation Services.
HONG KONG COMPANY SECRETARY
Reachtop KSHK provides Hong Kong Corporate Secretarial Service
HONG KONG STATUTORY AUDIT SERVICE
Hong Kong Statutory Audit & Assurance Services for your company
HONG KONG COMPANY FORMATION
Assistance with Hong Kong company formation, incorporation & registration.
VIRTUAL OFFICE SERVICE
Reachtop KSHK provides a range of services in addition to Hong Kong Company Formation Services.
Talk to our CPAs
Treat your business with our professionals
Our Location
Unit 1113, 11/F, Peninsula Centre, No. 67 Mody Road, Kowloon, Hong Kong
Email Address
Telephone
+852 2997 9878
