TAXATION

The Taxation System in Hong Kong

In Hong Kong taxation is levied on a territorial basis. Tax is primarily levied on Hong Kong sourced income as derived from or arisen in HK within a basic tax period.

Taxes are levied in three categories for a year of assessment which can end on 31 March, 31 December, or whatever date if nominated by the taxpayer. Profits Tax, Salaries Tax and Property Tax are the primary categories.

Individual taxpayers, if carrying on a trade in the form of proprietor or partnership and receiving income under any employment may elect for Personal Assessment in which has the effect of amalgamating various incomes into a single assessment.

 

Value-Added Tax Planning Services

IBC CPA are experienced in handling offshore tax cases pertinent to manufacturing and service industries across different tax jurisdictions. We are experienced in handling the arrangements stipulated in the DIPN/s issued by IRD to minimize the tax obligation of our clients. We use professional knowledge to advise clients to accomplish tax-effectiveness in an entirely legitimate manner.

 

Tax Services

Our taxation services can be summarised as follows:

  • Answering queries from the Inland Revenue Department (IRD of HK) on behalf of clients;
  • Handling tax disputes matter and raising objection to CIR or Appeal to the clerk of BoR on behalf of clients;
  • Filing the Employer's return (BIR 56B) or employment emolument of employee (BIR 56M);
  • Property tax matters;
  • Salaries tax matters;
  • Tax matters in respect of sole proprietorship;
  • Tax matters in respect of partnerships;
  • Hold-over of provisional profits/salaries/property tax;
  • Tax Planning in respect of profit /estate duty/salaries tax;
  • Field audit;
  • Back duty / tax investigation;
  • PRC Tax issues can be handled.