1101, CMB Wing Lung Bank Centre, 630-636 Nathan Road, Mongkok, Kowloon. (Mongkok MTR Exit E2)
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Shum Law Corporate Services Limited

岑 羅 專 業 服 務 有 限 公 司

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Related Services

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Profits Tax - Limited/Unlimited Company

 

Under the "Inland Revenue Ordinance" from Inland Revenue Department (IRD), profits taxpayers mean persons, including corporations, partnerships, trustees and bodies of persons that profit from carrying on trade, profession or business in Hong Kong.

 

Scope of Charge

Profits arising in or derived in Hong Kong from carrying trade, operating any business or service are subject to tax (except profits arising from or losses incurred by the sale of capital assets). In contrast, no tax is levied on profits arising abroad, even if they are remitted to Hong Kong. Whether business is operated in Hong Kong and whether profits are derived from Hong Kong are mainly determined by operating facts.

 

If a person sells his/her building or any property as part of a scheme of profit-making, it will be regarded as a "business" and he/she is required to pay tax on any profit he/she may make.

 

Profits Tax Rate

Profits tax rate for a limited company is 16.5%

Profits tax rate for a unlimited company is 15%

 

Financial year

The financial year generally ends on 31 March or 31 December of each year, with a 12-month accounting period. However, the first accounting period for a newly set up company cannot exceed 18 months.

 

 

*If you are a sole proprietor, a partner in a business or a property owner, you can elect for personal assessment if you are eligible. This may help to reduce the tax you need to pay by aggregating your assessable income under salaries tax, profits tax and property tax, and making adjustments for the deductions.  The balance, if any, will be taxed at the same rates as those used for salaries tax.

 

 

 

 

 

Taxation Services for Limited Company:

 

  • Acting as Tax Representative
  • Filing of Corporate Tax Return and Proposed Tax Computation with Supporting Schedules
  • Filing Employers’ Returns
  • Applying for Extension for filing Tax Returns
  • Lodging objection against improper Tax Estimation / Tax Assessment
  • Applying for Hold-over of Provisional Tax, Tax Payment by Instalment or Tax Refund
  • Handling Inland Revenue Department’ enquiries, tax field audit or investigatio
  • Handling tax litigation
  • Providing tax planning and tax advices