Hong kong profits tax return

Profits Tax Returns. No attempt should be made to use a printed copy of the specimen form for filing purpose. Is the sales tax chargeable? You may also use our return envelope to send back your tax return.

Hong Kong has no VAT or consumption tax.

Individuals, sole proprietorships, partnerships and property owners are also required to file annual profits tax returns. Such a corporate tax rate in Hong kong is considered low when compared against other economic powerhouses in. In Japan for example, the corporate tax rate is , and in South Korea, it is.

Branches are taxed in the same way as corporations. You are required to submit your Tax Return. Pre-tax profits fell to $4. In short, it means that it is the geographical ”source of the income.

For corporate groups, only one member of the group will be able to apply the reduced rate. Unincorporated entities (such as sole-proprietors) as well as non-resident entertainers and sportspersons not working through an agency or corporation pay a rate of on profits. With our team of qualified professionals, we can assist clients in preparing, completing your profits tax returns or even communicating with the IRD! FastLane Group for a price quotation! In this short article, we’ll look at what the profits tax is, the tax rates and the ways to reduce your tax bill.

Both residents and expats are taxed at either a progressive to , depending on their income level, or a standard rate of. It is important to keep in mind that, as an expat, you are generally still responsible for filing taxes in your home country. The profits tax rate is 8. There are series of profits tax return forms.

HKD$ 0000 and 16. Any income that is not within any one of these schedules or categories is not subject to tax. Normally, businesses should file the profits tax return within month from the date of issue.

Tax returns are sent to the Inland Revenue Department within one month of their issue. They are usually issued on April st, as the tax year ends on March st. Below are the things that you need to do when your company receives its first profits tax return.

Auditing Standards: Firms for audit services need to prepare their financial statements following Honk Kong ’s auditing standards and applicable laws.

This is applicable to income that is already taxed (e.g. profit tax or property tax ), etc. If the company has profit in the first year, the form is issued on October yearly. What is the tax rate of profits tax ? Person’ is defined under s. Capital gains on financial transactions are also effectively exempt from tax.

Where the deadline for filing tax return for a year ending in March is 15th November, the one for December is 15th August. Companies having a gross income less than or equal to HK$000do not need to file for tax return. However, a company pays a lower tax on the first HK$ million of its profits. Anything that goes above this amount is taxed at a standard tax rate.

This system when the tax rate changes under some conditions is called a two-tiered one.