Taxation

TAX SERVICES

The tax structure of Hong Kong is relatively straightforward compared with some of the more complex system which operates in other countries.

According to Inland Revenue Ordinance, there are three distinct and separate headings under which tax is levied: Profits tax, Salaries tax and Property tax.

Normally, Inland Revenue Department (IRD) will send out the tax return to taxpayer every year on April or May by post.

Taxpayer should file the tax return to IRD within the specific period.
**Late filing of tax return, it is an offence. It will lead to a fine or even prosecutions.

Profits tax Property tax Salary tax

Our Services are including:

  • Completing Tax Return
  • Preparing Profits Tax Computation
  • Applying for extension for submission of tax return
  • Objection to assessment or estimated assessment
  • Holdover of provisional tax
  • Replying letters and queries from the IRD promptly
  • Field audit and tax investigation
  • Company and personal tax advice

For further information about our tax services, please contact us at (852) 2563 0032 or by email.

Tax FAQ

  1. Could I change the year of assessment period 1 st Apr to the 31 st Mar of the following year to 1 st Jan to 31 st Dec?

    No, the year of assessment period is designated by Inland Revenue Department, which cannot be altered.

  2. If I am paid by a company in Hong Kong, am I liable to Salaries Tax in Hong Kong?

    It depends. If your income is below your entitlement to allowances do not have to pay tax (exempt) and you do not have to report your earnings to the IRD unless you receive a tax return.

  3. Do I have to apply to the Inland Revenue Department for a tax return to report my employment income?

    In Hong Kong, most of salaries earners do not have to apply to the IRD for a tax return. The system of tax returns works like thins:

    • Obligation to notify the Commissioner of an employee’s chargeability to Salaries Tax:
      If you are liable to Salaries Tax, the obligation to notify is as follows:
      • Your employer must notify, and
      • You may have to notify.
    • If you have received a tax return from the IRD by certain designated date, you need to notify chargeability. You simply report your income in that tax return.
    • If you are liable to tax and do not receive any tax return, you will have to notifychargeability by the designated date.
    • If you are exempt from tax:
      • you do not have to complete any tax returns, unless you receive one from the IRD; and
      • if you do receive a tax return, you must complete and submit it in time.
  4. If I am liable to pay tax but do not receive a tax return, do I have to write to the IRD?

    Yes. If you are liable to pay tax for any year of assessment, the law requires you to furnish a notification of chargeability to the Commissioner by the 31 st July of the year following that year of the assessment, unless you have already received a tax return. (Sample of notification)

  5. Do I have to keep records for my income and claimable expenses?

    Yes, it is recommended that you do. As regards claims for the deduction of expenses (e.g., donations, self-education expenses and your annual membership subscription to a professional body), as you personally incurred the expenses, you have to provide receipts as evidence for your claim, when required.

  6. Where can I obtain general tax information?

    You may get professional advice by calling us at xxxx xxxx or visit our website at www.xxxxxx.com

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