Hong Kong adopts territorial source tax system, whereby only income arising in or derived from a trade, profession or business carrying on in Hong Kong is subject to Hong Kong profits tax. In other words, a company incorporated in Hong Kong is potentially exposed to Hong Kong profits tax but it can lodge an offshore non-taxable claim for its offshore-sourced profits. On the other hand, a company incorporated outside of Hong Kong and which has carried on business in Hong Kong and earns Hong Kong-sourced profits is rather likely to have the tax reporting obligations in Hong Kong.
Our Hong Kong tax consultant team assists our clients in managing their (inter)national tax exposure. We can provide comments and suggestions on how to strengthen a proper offshore arrangement. Moreover, our Hong Kong tax consultant team also assists clients in complying with the relevant local tax rules and regulations in Hong Kong. In summary:
- Profits tax return filing
- Handling profits tax enquiries from the tax authorities
- Lodging objections against the profits tax assessments issued by the tax authorities
- Lodging application for holding over the professional tax charged by the tax authorities
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Salaries Tax Reporting by Employers and Employees – Any Errors Made?6 March 2020
Introduction Watch out! Are you receiving certain fringe benefits, such as housing benefits, share option benefits and share award benefits from your employer? Did you and your employer both report the fringe benefits to the Hong Kong Inland Revenue Department (“HK-IRD”) correctly in order to avoid any over-charge of your own Hong Kong salaries tax… read more
The Fifth Protocol to the Double Taxation Arrangement between Mainland China and Hong Kong5 March 2020
Introduction Mainland China and Hong Kong have entered into their Fifth Protocol (“Fifth Protocol”) to their Comprehensive Avoidance of Double Taxation Arrangement (“CN/HK-DTA”), which has officially come into operation in Mainland China since 1 January 2020 and will apply in Hong Kong as from 1 April 2020. The major contents of the Fifth Protocol are… read more
Hong Kong 2020-21 Budget2 March 2020
Introduction On 26 February 2020, the Financial Secretary of Hong Kong announced the Budget for the fiscal year 2020-21. The forecast is that for the fiscal year 2019-20, there will be a deficit of around HKD 37.8 billion, and that the fiscal reserves are expected to become HKD 1,133.1 billion by 31 March 2020. The… read more