Personal tax in Hong Kong may not be as straightforward as one may think. There are various tax reporting and notification obligations with stipulated deadlines imposed to different parties, including employer and employee, under the Hong Kong tax law. Individual taxpayers may also minimise their tax burden by claiming tax deductions, personal allowances and/or exemption provided in local tax regulation or double tax treaty.
We can assist with providing tax advisory services to both employer and individuals regarding their personal tax obligations. In addition, we can review and explore for clients opportunities for reducing the tax liability in a legal and acceptable way. If necessary, we can assist our clients to prepare tax projections where their can well manage the cash flow for tax payment in advance. In summary, we can assist with:
- individual tax returns
- employer’s tax filings
- lodging objection against tax assessments
- handling tax enquiries from the tax authorities
- housing allowance / rental reimbursement programmes
Tax Clearance Services
According to the Inland Revenue Ordinance, where an individual, who is chargeable to tax, intends to depart from Hong Kong for good or for a period exceeding one month, he/she is obliged to notify the Hong Kong Inland Revenue Department (IRD) not later than 1 month before the expected date of departure and clear all the tax issues with the IRD before his/her departure. His/her employer also has the informing obligation by filing the Form IR 56G to the IRD also not later than 1 month before the expected date of departure.
Our Hong Kong tax professionals can assist with the following:
- Preparing and submitting a letter to the IRD to notify his/her departure from Hong Kong;
- Preparing and filing all the outstanding individual tax returns and tax computations to the IRD;
- Handling tax enquiries raised by the IRD;
- Applying for tax clearance and letter of release with the IRD; and
- Assisting in arranging withdrawal of contributions made to the mandatory provident fund (MPF) scheme in Hong Kong.
- Preparing and submitting the Employer’s Return (Form IR 56G) to the IRD;
- Handling tax enquiries raised by the IRD in respect of the employees; and
- Arranging the MPF issues.
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The End of the Offshore Regime in Hong Kong?14 October 2020
The OECD is currently working on a new proposal to further address the Base Erosion and Profits Shifting (“BEPS”) project. The BEPS project itself was launched to prevent multinational enterprises (“MNEs”) from the exploitation of gaps and mismatches in tax rules by artificially shifting profits from high to low or no-tax locations where there is… read more
Termination of the Shipping Income Tax Agreement Between the United States and Hong Kong21 August 2020
On 19 August 2020, the government of the United States (“the US”) announced that the agreement in respect of double taxation relief on income derived from the international operation of ships entered into between the US and Hong Kong (“the Agreement”) has been terminated. Pursuant to the Agreement, which has been effective since 1989, income… read more
Tax Incentives in the Greater Bay Area and Free Trade Zones/Port in Southern China7 July 2020
Pursuant to a co-operation framework agreement entered into in July 2017, Hong Kong, Macau and nine municipalities in the Guangdong Province of Mainland China including Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing have strategically integrated to form the Greater Bay Area (“GBA”), with a view to develop the region as a world-class… read more
Did you receive THE Green Envelope? Tips on the 2019/20 individual (salaries) tax return7 June 2020
Individual Tax Return Filing for the Year 2019/20 The Hong Kong Inland Revenue Department or simply the Hong Kong Tax Authority (“IRD”) has now issued the year 2019/20 individual (salaries) tax returns (yes, that green envelope) for completion. Lodgement of tax exemption claims Individuals are obliged to report their relevant income in their individual tax… read more