Malaysia Hotline: +603- 2141 8908
Hong
Kong Profits Tax is one of Hong Kong companies' basic taxes. It is territorial
in nature and only profits which are deemed to have, a Hong Kong source are
subject to Profits Tax. If a Hong Kong company does not carry on business in
Hong Kong or if it income is generates outside of Hong Kong is not subject to
Hong Kong tax (offshore status application).
Basic
Requirements for Hong Kong Profits Tax
To be
liable to Hong Kong Profits Tax, a company must meet three basic tests as set
out by the Privy Council in the Hang Seng Bank case. These tests are:
1. The
company must be carrying on a trade, profession or business in Hong Kong;
2. The
company must be generating profits from that trade, profession or business of a
type which are subject to Profits Tax, for example, trading profits or
commission as opposed to non-taxable capital gains or dividends; and
3. Those
profits must have a Hong Kong source.
Hong
Kong Profits Tax Rate
The
current profits tax rate is 16.5% on assessable profits. All companies are subject
to the same profits tax rate irrespective of their residential status.
Hong
Kong Tax Return
Hong
Kong Tax Return is refers to the reports filed with the department of the Hong
Kong Inland Revenue Department containing information used to calculate the
taxes and declare liability for taxation. Tax returns are generally prepared
using forms prescribed by the tax authority.
Hong
Kong Tax Return Requirements and Deadlines
The IRD
of Hong Kong generally issues the corporate profits tax returns on the 1st of
April every year. Normally, profits tax return should be filed within 1 month
from the date of issue. The company has to file and complete the tax return
together with the following supporting documents:
1. A
certified copy of the Balance Sheet, Auditor’s Report and Profit & Loss
Account pertaining to the basis period.
2. A tax
computation with supporting schedules showing how the amount of Assessable
Profits (or Adjusted Loss) has been arrived at.
3. Other
documents and information as specified in the Notes and Instructions of the
profits tax return.
Hong
Kong is an ideal jurisdiction in which to incorporate a company with generates
profits outside of Hong Kong. Hong Kong is officially a low tax jurisdiction
which provides simple, certain and straight forward legislation. With proper
planning, Hong Kong company which income is generates outside of Hong Kong is
not subject to Hong Kong tax (offshore status application).
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com