Tax Consultancy Services

General speaking, the tax system in Hong Kong is on a territorial basis; that means only income arising in or derived from sources in Hong Kong is chargeable to tax (the 'Locality Source principle'). The residence or nationality of a person is therefore is not a determining factor of his or her chargeability for tax saving for some exceptions. Also, foreign companies carrying on business in Hong Kong are chargeable to Hong Kong tax and the tax implication is the same as those of local companies. However, the Locality Source principle is not codified in details in Hong Kong tax law and the Internal Practice of Inland Revenue Department may not be always in line with the law interpretation. It is therefore essential to have planning ahead to ascertain possible tax implications of the business operation.

The income tax imposed Hong Kong is charged under 3 major limbs:

  • Profits tax on profits from trade, profession or business in Hong Kong
  • Property tax on income from property in Hong Kong
  • Salaries tax on income from office, employment or pension in Hong Kong.

Inland Revenue Department requires potential taxpayers to file appropriate annual tax return on their possible income in order to assess tax.

In addition to the abovementioned nature of tax, it is also important to note that sale of Hong Kong immoveable property, stocks / shares or bearer instruments may also attract stamp duty.

Although Hong Kong tax system is relatively simpler than many jurisdictions, a helpful tax adviser may assist in avoiding unnecessary tax and penalty, in estimating tax implication and in handling tedious tax compliance.

Our tax-related services include the following:

  • Act as client tax representative to deal with Inland Revenue Department for tax matters
  • Prepare and file various tax returns, namely Profits Tax Returns, Employer's Returns on Employees' remuneration, Individual and Personal Assessment Tax Returns and Property Tax Return
  • Compute possible tax liability
  • Assist in handling tax queries, tax field audits and tax investigation from Inland Revenue Department
  • Assist Individual and Corporate tax compliance
  • Provide advice on tax planning and offshore tax structuring