Gold Treasury Accounting & Finance Centre

Tax Rates for year of assessment 2008/09 onwards :

Profits tax normal rate for corporations is 16.5%.

Profits tax normal rate for unincorporated businesses is 15%.

Property tax rate is 15%.

Two-tiered profits tax rates for year of assessment 2018/19 onwards:

For corporations, 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000.

For unincorporated businesses, 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000

T A X A T I O N

TAXATION SERVICES

Submit notification on change of company particulars (Including business name, registered office address, postal address, business nature & business partners)
Notification of Commencement of Business by Corporation
Completion & filing of tax returns, including:
Profits Tax Return
Tax Return for Individuals
Employer's Return of Remuneration & Pensions
Property Tax Return
Perform profits tax computation
Assist the election for Personal Assessment and Claim for Deductions & Allowances
Filing notification of chargeability to profits tax, salaries tax & letting of properties.
Apply for holdover of provisional tax
Submit notification of Cessation of Business
Request for a Notice of No Objection to a Company being Deregistered
To be tax representative

Taxation Service Fee

Usually fixed service fee will be charged for submission of notifications.
The service fee for requesting a Notice of No Objection to a Company being Deregistered will be charged under the company secretarial service fee when requesting company deregistration services.
Tax service fee can be different from cases to cases. It mainly depends on the complexity of the case and the time limit available to perform the service.
Special discount may be allowed when having both book-keeping & taxation services.
Requisition of service fee quotation is free of charges.

We charge at reasonable fee.

Tax Liabilities

The direct taxes levied under the Inland Revenue Ordinance are Profits Tax, Salaries Tax, & Property Tax.

Profits Tax

Persons, including corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Hong Kong are chargeable to tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Hong Kong from such trade, profession or business.

Salaries Tax

Salaries tax is imposed on all income arising in or derived from Hong Kong from an office, employment or pension. Income includes all forms of income and perquisites from an employer and others. Holiday journey benefits, award of shares, share option gain & “rental value” are chargeable income.

Property Tax

Property Tax is charged on the owners of land and/or buildings that situated in Hong Kong and is computed at the standard rate on the net assessable value of the land and/or buildings.

Salaries Tax & Personal Assessment

Net chargeable income is charged at progressive rates. The progressive rates are 2% on the first $50,000, 6% on the second $50,000, 10% on the third $50,000, 14% on the fourth $50,000 and 17% on the remainder for the year of assessment 2018/19 onwards.

Standard tax rate for salaries tax & personal assessment is 15% on the net total income, i.e. assessable income after deductions but before allowances, for the year of assessment 2010/11 onwards.

If the tax pay on the basis of the net chargeable income exceeds the tax charged at standard rate on the net total income, then the taxpayer only needs to pay the lower amount of tax.

Failure to Submit Tax Return

If a person cannot lodge a tax return by the due date or the extended due date, estimated assessment will be issued and the person may be required to pay more tax. The person may also be subject to penalty proceedings which include payment of penalty, or even prosecuted.

Possible Ways to Reduce Tax Payable

Election for personal assessment may reduce the tax payable by individual taxpayers who ordinarily residing in Hong Kong & have to pay profits tax and/or property tax. (If a married person elect personal assessment, his or her spouse should also elect personal assessment and both of them are assessed jointly.)

Profits tax rate for corporations (eg. limited company) is 16.5% while the profits tax rate for unincorporated businesses (eg. sole-proprietorship) is 15%. Profits tax rates can be one of the concern to reduce tax payable when deciding establishing a corporation or an unincorporated business.