Hong Kong

Claim for Profits Tax Exemption in Hong Kong

Hong Kong is famous for its low tax rates and territorial taxation principle. In accordance with the territorial taxation principal, only profits arising in or derived from Hong Kong are chargeable to Profits Tax, currently at the rate of 16.5%. Profits derived from or sourced from other places outside Hong Kong are not taxable, or, free from profits tax. Possibility of Tax Exemption Claim Under the territorial taxation principle, it is possible and legal for your Hong Kong company to have its profits totally exempted from tax. (1) Trading Profits In determining the locality of profits derived from a Hong Kong business, the Hong Kong Inland Revenue Department (“IRD? will look at what the taxpayer has done to earn the profits in question and where he has done it. If the contracts for purchase and sale are initially negotiated, concluded and subsequently executed outside Hong Kong, there are grounds to […]

Hong Kong Tax Filing Services – for Individuals and Corporations

Normally, a tax return for each year of assessment will be issued to individuals, sole proprietor, partnership, property owner, limited company incorporated in Hong Kong, and company incorporated elsewhere but with a business establishment in Hong Kong. Individuals and companies must fill out the return and submit them to Inland Revenue Department within one month from the date the return is issued or other dates as specified in the tax returns. Preparation and Filing of Tax Return   Basic Service Charges salaries tax return from HK$300 property tax return from HK$300 sole proprietor (salaries tax or profits tax return) from HK$500 partnership (or salaries tax or profits tax return) from HK$1,500 limited company (profits tax return) from HK$3,000 The actual amount charged will be varied on the basis of the nature of business, volume of transactions, the scale of business etc. We will prepare the necessary supporting documents, prepare the […]

Hong Kong IRD Tax Investigation Services

Tax investigation and field audit are methods of investigation set out by the Hong Kong Inland Revenue Department when they are having doubts regarding the sources of income, the completeness and accuracy of the tax returns filed by taxpayers. Authorized under the Inland Revenue Ordinance, the assessing officer is empowered to investigate the taxpayer. The general scope of the investigation is very broad, including companies, individuals, and even family members of the taxpayers. Kaizen has a professional team with extensive knowledge of Hong Kong tax laws and many years of successful experience. Kaizen provides comprehensive assistance to its clients, wide range analysis and recommendation. Our professional tax services can save you valuable time and unnecessary financial costs by providing comprehensive plan to solve the past tax issues and also reduce the future risk of tax related problem. Our Hong Kong Tax Investigation Services IRD Procedure Kaizen’s Role Taxpayer receiving the […]

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