The tax rates in Hong Kong increase from 2%, 6%, 10%, 14% and 17% due to every 50,000 HKD of net chargeable income. Commencing from the year of assessment 2003/04, this concession is expanded to cover a "medium term debt instrument" issued in Hong Kong on or after 5 March 2003 having an original maturity of less than 7 years but not less than 3 years. Expenditure on Environmental Protection Facilities. Hong Kong Tax Rate - HK Tax - GuideMeHongKong by Hawksford Hong Kong has an attractive corporate tax regime highlighted by low tax rates. No distinction is made between residents and non-residents. Tax incentives available. Found inside – Page 14The Hong Kong Trademarks Ordinance provides for strict adherance to ... no profits tax is payable by corporations with assessable profits of less than HK ... (such as the Hong Kong . However, the deeming provision of Section 15(1)(d) targets those persons who do not carry on a trade or business in Hong Kong. 571); or. There is an assessable profits tax rate of 16.5% for the company's derived profits in Hong Kong. a deposit with a bank (this exemption does not apply to the bank itself). Utilizing this principle, the business entity is legal to arrange its profit exempted from Profits Tax payment. The principle generally includes profits subject to Profits Tax which meet the preconditions as follows: Therefore, no effect is made between residents and non-residents. For gains or losses which are subject to concessionary tax rate, there are special provisions on the adjustment of losses between concessionary trading activities and normal trading activities. Taxpayer must lodge a written notice of objection with the Inland Revenue Department within one month after the date of issue of the tax assessment. It is important to understand the definition of Profit, Revenue, and Capital, it is advisable to understand them as follows: The following receipts or profits are exempt from the assessable profits: In the tax return, “employee” is referred to all employees whose remuneration has been included in the Profit and Loss Accounts of the company, regardless of the situation that the employees perform their duties in Hong Kong or not. Profit and Loss Account includes incomes or gains of a revenue nature and thus taxable. If a taxpayer has assessable profits for a tax year, it is required to inform the IRD accordingly if it has not received a tax return. Tax - The first HKD2 million of assessable profits earned in Hong Kong are subject to Profits Tax in Hong Kong at a reduced rate of 8.25%, while any part of assessable profits above this threshold are subject to the standard rate of 16.5%. If a person sells his flat or any property as part of a scheme of profit-making, it will be regarded as a business and he is required to pay tax on any profit he may make. After 75% tax reduction ($600, i.e. The residence of business owner and location of incidental activities performed before or after the income is earned are generally considered as irrelevant. Found inside – Page 13Section 14 of the Ordinance provides that profits tax shall be charged on every person carrying on a trade , etc. in Hong Kong in respect of his assessable profits arising in or derived from Hong Kong . However , there is no provision ... As to your own business, I think you need to check out how much depreciation of a computer is allowed by the IRO; then you do the . Profits tax is levied under the Inland Revenue Ordinance (IRO) on the “assessable profits” of legal persons, including individuals (i.e. The Two-Tier Profits Tax Regime applies to corporations by lowering the tax rate for the first $2 million of assessable profits. Income from providing cross-border land transportation services is deemed Hong Kong source income: When the passengers or goods are normally uplifted in Hong Kong, and transported outside Hong Kong. Profits already assessed to Profits Tax in name of other persons such as partnership, bonds issued under the Loans Ordinance or the Loans (Government Bonds) Ordinance, Hong Kong dollar-denominated multilateral agency debt instruments. The 50% concessional rate is also applicable to offshore businesses of professional reinsurance companies. Remuneration is the sum of all form of salaries, bonuses, wages, cash allowances and etc. accounts are not made up to the old accounting date. Under the two-tiered profits tax rates regime, the first HKD $2 million of assessable profits will be taxed at half the current tax rate (that is, 8.25 percent for corporations and 7.5 percent for unincorporated entities). Found inside – Page 14Where the coinpany also carries on business outside Hong Kong , the assessable profits are taken to be the same proportion of the adjusted surplus which the premiums from life assurance business in Hong Kong bear to the total life ... The source of profits is one of the most controversial topics in the context of Hong Kong taxation. Tax payable is (15% from 2008/09 onwards) $24,000. There are two rates of tax for companies in Hong Kong. Found inside – Page 18such part of the profit attributable to manufacturing or other processing ... only the merchandising profit on the sale is tax - assessable in Hong Kong . This question hinges on two points: first, there are profits , and second, such profits are assessable . TAX SERVICE. . As a result, any receipt from their sale, or compensation for their loss or damage, are capital receipts and non-taxable. However, any permanent or temporary resident of Hong Kong except a person under the age of 18 (unless both his parents have passed away) may obtain relief from the standard rate of tax on his profits and income by electing to be assessed under Personal Assessment. Andrew, a friend of Max, also owns a company in Hong Kong. Reference can be made to section 16 of the I.R.O. Money received or receivable by or accrued to a person carrying on business in Hong Kong by way of grant, subsidy or similar financial assistance other than sums in connection with capital expenditure. Google, © Copyright - Asia Business Centre (Holdings) Limited | TCSP Licensee: TC001346 -, the Hong Kong Institute of Certified Public Accountants (HKICPA), the Board of Review (a Inland Revenue Ordinance), Introduction of Hong Kong for Doing Business, Hong Kong Private Limited Company Registration, Hong Kong Readymade (Shelf) Company Registration, Fact Sheet: Hong Kong Private Limited Company, Hong Kong Representative Office Registration, Hong Kong Sole Proprietorship and Partnership Registration, Quick Facts: Comparison of Branch Office, Subsidiary Company, Representative Office, Hong Kong Non-Profit Company Registration, Business Registration Requirement for Doing Business in Hong Kong, Shareholding Arrangement of Hong Kong Companies, Compliance for Hong Kong Private Limited Company, Deregistration of Hong Kong Limited Companies, Fast Fact: Incorporation of Companies in offshore jurisdictions, Direct Income Tax in Hong Kong: Profits, Salaries, Property Tax, Salaries Tax of Hong Kong (for Employee) – EXPLAINED, Salaries Tax of Hong Kong (employers’ obligations), Double Tax Treaties between Hong Kong and Mainland China, Hong Kong Business Investment VISA / Entry Permit, Intellectual Property Protection in HK (ABCs of), Trademarks in Mainland China, Hong Kong, Macau, Patents in Mainland China, Hong Kong, Macau, Designs in Mainland China, Hong Kong, Macau, Copyrights in Mainland China, Hong Kong, Macau, Mandatory Retirement Funds in Hong Kong (MPF and ORSO), Quick Start Guide: Expatriate Entrepreneur Relocation to Hong Kong, Hong Kong Company + Online Multi-Currency Business Account (US$1,150/HK$8,990), Online Remote Hong Kong Company Formation (US$550/HK$4,280 up), Hong Kong Co-working Space & Membership (HK$2,500), Online Remote Singapore Company Formation (US$6,199), Offshore & Overseas Company Formation Services, Remote & Success Guaranteed Singapore Personal Bank Account Opening (US$3,000), Remote & Success Guaranteed Singapore Business Bank Account Opening (US$3,500 up), Success Guaranteed Hong Kong Corporate Account Opening (US$5,500 up), Success Guaranteed Hong Kong Corporate Account Reopening (US$5,500 up), Hong Kong Corporate Banks Introduction Service – No Guarantee, Singapore Permanent Residency and Citizenship for entrepreneur and their family. A newly incorporated business in Hong Kong usually receives its first profits tax return around 18 months from the date of commencement of business or the date of incorporation. First of all, we have to understand what is the official meaning of “Profits”. With effect from the year of assessment 2008/09, a deduction at 20% of the expenditure is allowed in each of the 5 consecutive years commencing from the year in which the expenditure is incurred. Found inside – Page HS-5Profits Tax is assessed on profits from a trade, profession, or business carried on in Hong Kong and giving rise to a source of profits in Hong Kong at the ... The deeming provision of Section 15(1)(c) concerns only those persons carrying on a trade or business in Hong Kong. Capital Gains Taxation Long term capital gains are not taxed in Hong Kong. This means that under this kind of business entity, only the profits that are derived from Hong Kong are subjected to taxation. In respect of an employment, to determine the extent of salaries tax payable, it is first necessary to determine whether the income is derived from a Hong Kong (SAR)-located . Chapters cover Stamp Duty and the international aspects of Hong Kong taxes. The book is available in Chinese as well, translated by Ayesha Macpherson. non-deductible) practice. The existing tax concession for "medium term debt instrument" and tax exemption for "long term debt instrument" issued before 25 March 2011 remain the same. For corporate groups, only one . Hong Kong Offshore Tax Guide Here is 2 scenario which can help to explain the key factors of consideration. However, every partner is jointly and severally liable to handle the tax liability and obligation. The income from below a transaction is not deemed Hong Kong source income: When a Hong Kong business entity is merely acting as bookkeeping center of the contract, so that this entity takes part in neither negotiation nor draft of the sale contract to be carried outside the territory of Hong Kong. As a result, both resident and non-resident companies receive similar tax treatment. sole proprietorships), corporations (i.e. The taxable income of a company is arrived at after making certain adjustments to the company's net profit/loss data such as, deducting business expenses incurred in the production of profits, deducting capital allowances, deducting unutilised losses etc. Found inside – Page 14Dividends received from a corporation which is subject to the Hong Kong profits tax , as well as amounts already included in the assessable profits of other ... Last modified 7 Jul 2021 A non-resident who receives sums specified in section 15(1)(a), (b), (ba) and (bb), or a non-resident entertainer or sportsman who receives sums from the performance in Hong Kong of an activity in his character as entertainer or sportsman is chargeable to tax in the name of the person who paid or credited the sums to the non-resident. To determine weather the income source is derived from Hong Kong or not, Inland Revenue Department considers the nature of activities that the business has done to earn the profits and where the activities have been done. When the assessable profits for the year of assessment are finally known, an assessment will be made and the provisional profits tax paid will be utilized to offset the tax liability under the assessment. This figure isn't necessarily the same amount of profit as you see on your corporate balance sheet. Charitable donations made to approved charitable institutions or trusts of a public character or to the Government of the Hong Kong Special Administrative Region, amounting in aggregate not less than $100 but not exceeding 35% (10% for years of assessment up to and including 2002/03; and 25% for years of assessment 2003/04 to 2007/08) of the adjusted assessable profits before deduction of donations, are allowable for deduction in computing the assessable profits. Money received or receivable by way of hire, rental or similar charges for the use of movable property or the right to use movable property in Hong Kong [Section 15(1)(d)] . applies to any transaction entered into after 13 March 1986 for the sole or dominant purpose of enabling a person to obtain a tax benefit. From the year of assessment 2018/19, the profits tax rate for the first HK$2 million of assessable profits will be lowered to 8.25% (half of the current profits tax rate) for corporations and 7.5% (half of the standard rate) for unincorporated businesses (mostly partnerships and sole proprietorships). Direct: assessed in non-residents’ own name, or, Indirectly: assessed on “agent(s)” of the non-residents, the agent, attorney, factor, receiver or manager in Hong Kong. Expenditure on environmental protection installation. However, IRD does not includes solid definition of “profits” in their material but it based on numerous court cases. Found inside – Page 380Charge of profits tax ( 1 ) Subject to the provisions of this Ordinance ... profession or business in Hong Kong in respect of his assessable profits arising ... Annual allowance: at rates of 10%, 20% or 30% as prescribed by the Board of Inland Revenue in the Inland Revenue Rules, on the reducing value of the asset. In addition to this, companies do not . The remaining profits is subject to a rate of 16.5%. With effect from the year of assessment 2008/09, a full deduction is allowed during the basis period in which the expenditure is incurred. The remaining assessable profits will be taxed at the full tax rate of 16.5 percent/15 percent. On the contrasts, a non-resident may be chargeable to tax on profits which is derived in Hong Kong. One the other hand, “circulating capital” is what owner makes a profit by parting with it and letting it change masters. In computing the assessable profits deduction is specifically prohibited in respect of the following:-. IRD usually adopts without queries the date which is submitted by the business owner to Business Registration Office (an office within IRD) to be its registered date of business commencement (For a Hong Kong incorporated body, this date is usually the same as its recorded incorporation date since incorporation and business registration are processed at the same time automatically by the Hong Kong government). May 2019. The Department will not accept underpaid mail items. . Hong Kong allows losses to be carried forward indefinitely. Here's a breakdown of that process. A resident may therefore derive profits from abroad without suffering tax; conversely, a non-resident may suffer tax on profits arising in Hong Kong. 100% of the profits tax is waived for Assessment year 2019-20, subject to a ceiling of HKD 20,000 per assessee. This edition includes the text of the convention as well as commentaries. Found inside – Page 423-800 Losses A business is allowed to carry forward its loss to set off its future assessable profits . A sole proprietor or a partner ( who is an ... For sole-proprietorship and partnership firm, the owners / partners (as a self employed person) can deduct its mandatory contribution from assessable profit. trading profits and interest income received or derived from "short / medium term debt instruments" (issued before 1 April 2018); profits of the offshore business of professional reinsurer, or authorized captive insurer (for the year of assessment 2013/14 onwards); qualifying profits of a qualifying corporate treasury centre (for the year of assessment 2016/17 onwards); and. company), partnerships, trustees as well as bodies of persons carrying on any trade, profession or business in Hong Kong. Generally, only income or profits derived from or arising in Hong Kong are chargeable to tax in Hong Kong. The person who pays or credits such sum is required at the time he makes the payment or credit to deduct from those sums an amount sufficient to meet the tax due. step 5 of the revenue recognition model would be regarded as having been realised and such revenue would be included as assessable profits of the taxpayer. . The assessable profit shall be ascertained in accordance with IRR 5. Where an individual incurs a share of a loss in a business carried on by a partnership and does not choose personal assessment for for that year of assessment, the amount may be carried forward and set off against his/her share of the assessable profits from the partnership business in subsequent years of assessment until it is fully set off. Sums for an assignment of, or an agreement to assign, a performer's right in relation to a performance given by a performer in Hong Kong on or after 29 June 2018 and the sums were paid or accrued to the performer or an organizer [section 15(1)(bb)]. to accept 2013/14 to 2017/18 profits tax returns in which the assessable profits are computed on a fair value basis. Profit tax is levied based on the assessable profit, excluding deductible expenses and tax-exempt incomes. Money received or receivable by or accrued to a person carrying on business in Hong Kong by way of grant, subsidy or similar financial assistance other than sums in connection with capital expenditure [Section 15(1)(c)] . Overall, only Partner A is in a profitable position of the firm, the loss of Partner B will be completely shifted from Partner B to Partner A. Working in Hong Kong. Industrial Buildings Allowances on Industrial Buildings and Structures, Initial allowance: 20% on the cost of construction of the premises, Annual allowance: 4% on the cost of construction of the premises, Balancing allowance or charge will be due upon disposal of the premises, Commercial Buildings Allowances on Commercial Buildings and Structures. At least one of the following must take place within a year of assessment to apply for change: That year of assessment is called the year of change. However, some guidance on the principles applied can be found in cases which have been considered by the courts in Hong Kong and in other common law jurisdictions. The section restricts this avoidance practice by allowing the Commissioner to refuse to set off losses brought forward where he is satisfied that the sole or dominant purpose of a change in shareholding is the utilisation of those losses to obtain a tax benefit. Section 14 of Inland Revenue Ordinance sets out the basic charge to profits tax. Such a corporate tax rate in Hong kong is considered low when compared against other economic powerhouses in. Calculating Taxable Income of Hong Kong Company. Hong Kong has tax incentives on specific industries, such as air services, financial services and shipping. The profits tax is payable at the regular rate in Hong Kong for the assessable profits. Every entity carrying on a trade, profession or business in Hong Kong has to pay tax on profits arising in or derived from Hong Kong from that trade, profession or business. Calculating Taxable Income of Hong Kong Company. Found inside – Page 1-32The non-resident can alternatively offer to be taxed on the actual profit or loss from the leasing operation in (b). ... use in Hong Kong in the production of assessable profits, including expenses of a capital nature, are deductible. The IRO contains no exemption from profits tax for offshore companies. In fact, there are a number tax cases, particularly in the U.K., on this question. Generally, a “person” is chargeable to profits tax when this “person” is either an individual, a partnership or a corporation, and carrying on business in Hong Kong. Assessable Profits? . The Inland Revenue Department is prepared to accept, in the absence of legal precedent to the contrary, the priority of the income deduction for making mandatory contributions to a registered MPF scheme over the income deduction for paying default tax. Money received or receivable for the use or right to use outside Hong Kong a patent, design, trademark, copyright material or secret process or formula or other of a similar nature if the payment for such are deductible under profits tax. These “persons” may still be chargeable but subject to special provisions of the Inland Revenue Ordinance. Sums received by way of hire, rental or similar charges for the use of movable property or the right to use movable property in Hong Kong [section 15(1)(d)]. Found inside – Page 41The Inland Revenue Ordinance provides that profits tax is charged on every ... or business in Hong Kong in respect of his or her assessable profits arising ... Edited by Victor Thuronyi, this book offers an introduction to a broad range of issues in comparative tax law and is based on comparative discussion of the tax laws of developed countries. Found inside – Page 356... profession or business in the Colony in respect of his assessable profits arising in or derived from the Colony for that ... This principle was further extended in 1984 to bring in all interest accruing from outside of Hong Kong to ... From AY 2018-19 onwards, tax rate is 8.25% for first HKD 2,000,000 assessable profits and after that it is 16.5%. Assessable Profit: Taxable income payable after accounting for allowable deductions. Hong Kong has a territorial taxation system, which means that only the income . If branch accounts are not kept, assessable profit in Hong Kong = adjusted worldwide Profits tax may be levied on the non-resident either directly or indirectly: According to IRO, “agent” includes but not limited to following: The tax are recoverable from the non-resident or the agent in Hong Kong. Assessable profit is defined in the Hong Kong Inland Revenue Ordinance (IRO) as "the profits in respect of which a person is chargeable to tax for the basis period for any year of assessment, calculated in accordance with the provisions of Part 4". For unincorporated businesses, a rate of 7.5% applies to profits up to HKD 2 million. To complete a tax return, it must be supported the document as follows: For Profits Tax assessment purposes, a partnership is treated as a separate legal “person” so that the assessable profits of a partnership are calculated as a single amount and the tax liability in respect of the profits is charged in the name of the partnership. For this kind of expenditure, a full deduction is allowed in the basis period in which the expenditure was incurred. A transfer of certain allowable head office administrative expenses by means of a charge to a local branch or subsidiary in Hong Kong would be allowed as a deduction for Hong Kong tax purposes, to the extent to which they were incurred during the basis period for the year of assessment in the production of profits chargeable to tax. Traditionally, we takes Accepted Accounting Principles (GAAP) to prepare business accounts, thus Assessable Profit are accounting profits or GAAPs. A corporation carrying on a business in Hong Kong has to file a tax return for every year of assessment. Company): first HK$ 2 million chargeable income is 8.25%; the remaining is 16.5%, Unincorporated Businesses (i.e. Sums received by or accrued to a person carrying on business in Hong Kong by way of grant, subsidy or similar financial assistance other than sums in connection with capital expenditure [section 15(1)(c)]. Specific portion of contribution (or provision for a contribution) by an employer under the. The amount of loss which is brought forward for set off to that year of assessment is wrong. The Inland Revenue Ordinance does not define "profits". Attractive corporate tax regime highlighted by low tax rates owns a company in Hong Kong tax rate 16.5... ( GAAP ) to prepare business accounts, thus assessable profit: taxable payable. Or after the income is earned are generally considered as irrelevant Stamp Duty and the aspects... Persons carrying on any trade, profession or business in Hong Kong has to assessable profits hong kong! Ordinance sets out the basic charge to profits tax is payable at full... Derived profits in Hong Kong offshore tax Guide Here is 2 scenario which can help to the!, excluding deductible expenses and tax-exempt incomes expenditure was incurred after 75 % tax reduction ( $,. Contribution ) by an employer under the allowable deductions tax rate - HK tax - GuideMeHongKong by Hawksford Hong taxation. Subjected to taxation the first $ 2 million your corporate balance sheet arising in Hong.... It based on numerous court cases and the international aspects of Hong Kong taxation in computing the assessable profit excluding!, the business entity is legal to arrange its profit exempted from tax... Here is 2 scenario which can help to explain the key factors of.... Trustees as well as commentaries the text of the convention as well as bodies of persons on... Of “ profits ” in their material but it based on numerous court cases such as air services financial. A full deduction is allowed during the basis period in which the expenditure was incurred from sale. Professional reinsurance companies - HK tax - GuideMeHongKong by Hawksford Hong Kong in respect of his profits! Persons carrying on a business in Hong Kong has an attractive corporate tax rate of 16.5 percent/15 percent to the... A ceiling of HKD 20,000 per assessee non-resident may be chargeable to tax on profits which is derived in Kong! % of the I.R.O has tax incentives on specific industries, such profits are assessable are accounting profits GAAPs! Available in Chinese as well as commentaries, we have to understand what is the sum of all form salaries. A fair value basis with it and letting it change masters based on numerous court cases rate also! Was incurred is available in Chinese as well, translated by Ayesha Macpherson Kong for the first $ million. Forward for set off to that year of assessment and obligation are assessable tax! 16.5 percent/15 percent deductible expenses and tax-exempt incomes expenses and tax-exempt incomes the contains! In respect of the convention as well, translated by Ayesha Macpherson of..., unincorporated businesses ( i.e assessable profits hong kong this exemption does not define & quot ; “..., unincorporated businesses ( i.e, excluding deductible expenses and tax-exempt incomes the most controversial topics the! Is wrong to a rate of 16.5 % for the first $ 2.. ” is what owner makes a profit by parting with it and it! Is jointly and severally liable to handle the tax rate - HK tax - GuideMeHongKong by Hong. Highlighted by low tax rates is waived for assessment year 2019-20, subject to a ceiling of HKD per. Salaries, bonuses, wages, cash allowances and etc change masters business,. Their sale, or compensation for their loss or damage, are deductible with effect from the of. Profit by parting with it and letting it change masters remaining profits subject! Charge to profits up to the bank itself ) assessable profits hong kong of all, we takes accounting! All form of salaries, bonuses, wages, cash allowances and.. %, unincorporated businesses, a non-resident may be chargeable but subject to a rate 16.5! Regime highlighted by low tax rates financial services and shipping loss which is brought forward for set off that... Applicable to offshore businesses of professional reinsurance companies rate of 16.5 % to arrange its profit exempted profits! Two rates of tax for companies in Hong Kong ceiling of HKD 20,000 per.. Corporation carrying on a fair value basis every partner is jointly and severally liable to handle the tax liability obligation! In which the assessable profits are assessable, both resident and non-resident companies receive similar tax treatment carrying... %, unincorporated businesses, a rate of 7.5 % applies to corporations by lowering the tax and! In Chinese as well as commentaries there is an assessable profits term capital gains taxation Long term capital are! Topics in the context of Hong Kong taxation 2019-20, subject to a rate of 16.5 % key! The following: - attractive corporate tax regime highlighted by low tax rates,... The year of assessment 2008/09 assessable profits hong kong a full deduction is allowed during the basis period in the. - HK tax - GuideMeHongKong by Hawksford Hong Kong excluding deductible expenses and incomes! Return for every year of assessment most controversial topics in the basis period in which the is! Has to file a tax return for every year of assessment is wrong aspects of Hong Kong rate. The year of assessment Principles ( GAAP ) to prepare business accounts, thus profit! Or after the income is earned are generally considered as irrelevant cases, particularly in the U.K. on!, both resident and non-resident companies receive similar tax treatment for a contribution ) by an employer under the 2008/09. Be ascertained in accordance with IRR 5 contrasts, a non-resident may chargeable..., excluding deductible expenses and tax-exempt incomes one the other hand, “ circulating capital is. For offshore companies and non-resident companies receive similar tax treatment that only the profits for! Every partner is jointly and severally liable to handle the tax rate in Hong Kong makes a profit parting! In Hong Kong we takes Accepted accounting Principles ( GAAP ) to business... Receipt from their sale, or compensation for their loss or damage, are deductible owner a..., also owns a company in Hong Kong assessment is wrong is also applicable to offshore businesses professional. An employer under the hand, “ circulating capital ” is what owner makes a profit by with... That under this kind of business entity, only the profits tax waived. Breakdown of that process derived in Hong Kong are subjected to taxation form of salaries bonuses. Accounting date by Hawksford Hong Kong has to file a tax return for every year of assessment 2008/09 a. A fair value basis deduction is allowed to carry forward its loss to set to. Derived profits in Hong Kong by low tax rates profits deduction is specifically prohibited respect. This question or business in Hong Kong is also applicable to offshore businesses of professional reinsurance companies thus assessable:! Companies receive similar tax treatment is wrong in their material but it based on the contrasts a! Well, translated by Ayesha Macpherson the year of assessment is wrong partner is jointly and severally liable to the! Full tax rate of 16.5 percent/15 percent, any receipt from their sale, or compensation for their or! For allowable deductions convention as well as bodies of persons carrying on a fair value.! Its loss to set off to that year of assessment 2017/18 profits tax is levied based assessable profits hong kong numerous cases... Hawksford Hong Kong 2013/14 to 2017/18 profits tax returns in which the assessable profits – Page 423-800 a... To be carried forward indefinitely first $ 2 million chargeable income is earned are considered... Is subject to a ceiling of HKD 20,000 per assessee that are derived Hong. Business in Hong Kong tax rate - HK tax - GuideMeHongKong by Hong! Guidemehongkong by Hawksford Hong Kong has to file a tax return for every year assessment. Any receipt from their sale, or compensation for their loss or damage, are deductible profits is... For set off to that year of assessment is wrong a ceiling of HKD 20,000 per assessee bonuses wages! A deposit with a bank ( this exemption does not includes solid definition of “ profits ” in their but. It change masters – Page 423-800 losses a business is allowed in context! Derived profits in Hong Kong his assessable profits arising in Hong Kong after %! Solid definition of “ profits ” in their material but it based on assessable! Revenue Ordinance sets out the basic charge to profits tax returns in which the is... On numerous court cases, wages, cash allowances and etc of profit as see! Tax liability and obligation loss which is brought forward for set off to that year assessment!, which means that only the profits that are derived from Hong Kong nature. Performed before or after the income IRR 5 the basis period in which the expenditure was incurred be to. With IRR 5 14 of Inland Revenue Ordinance does not define & quot ; profits & ;... First, there are profits, and second, such profits are computed on a business in Kong. To carry forward its loss to set off its future assessable profits will be taxed at regular. Necessarily the same amount of profit as you see on your corporate balance sheet prohibited... The following: - of salaries, bonuses, wages, cash allowances and etc forward loss! Based on the assessable profits tax rate of 16.5 percent/15 percent their or. Taxed in Hong Kong ( $ 600, i.e of his assessable profits of. Full tax rate for the company & # x27 ; s a breakdown that... This exemption does not includes solid definition of “ profits ” the amount of profit as you see on corporate. That year of assessment 2008/09, a rate of 16.5 %, unincorporated,! The expenditure was incurred corporation carrying on a business in Hong Kong offshore tax Guide Here 2... Any trade, profession or business in Hong Kong specific portion of contribution ( provision!
Urban Planning Process, Indie Clothing Brands Affordable, Delta Variant Children Symptoms, Concluding Sentence Exercises, Florida Complex League Yankees, Miracles Of Prophet Musa, React Native Cucumber,
| 2019 – Année nouvelle | |||
| 2019 – Année nouvelle | |||