Whether you’ve filed your returns or not, it’s a good idea to review the basics of the Hong Kong tax system and its most recent revisions to optimize your tax savings.
Since the Hong Kong Inland Revenue Department (the Hong Kong tax administration) began sending out Tax Return letters to taxpayers in April, taxation has become a hot topic among HK register company owners.
If you own a Hong Kong business, you must file the following tax returns:
- As a corporate taxpayer, you must file a profit tax return and an employer’s return on behalf of your registered business.
- Individual Tax Return for Salaries
Here are the 10 Profits Tax Calculation & Savings Tips for HK Businesses:
- The deadline for filing a profit tax return varies each Hong Kong company.
- Director’s Salaries are subject to the Director’s Salaries Tax.
- Dividends to shareholders must be withdrawn when the profits tax has been paid.
- All income taxes are subject to a provisional tax.
- Some business profits are exempt from taxation.
- Not all business expenses are tax deductible.
- Profits Tax Allowances Are Limited to Specific Business Types
- In the age of borderless commerce, determining the location of profits is difficult.
- The Deficit Encourages Tax Savings
- Prepare for the Tightened Ruling if You Want to Pay Tax in Hong Kong.
