Tax Advisory

Territorial Source Principle

Hong Kong operates under the "Territorial Source Principle," meaning all persons or companies conducting business in Hong Kong, whether incorporated locally or not, are liable to pay taxes on income derived from Hong Kong.

Major Tax Categories in Hong Kong

Hong Kong's tax system includes four primary categories:

• Profit tax

• Salaries tax

• Property tax

• Stamp duty

Taxes Not Applicable in Hong Kong

Hong Kong does not impose:

• Sales tax

• Value Added Tax (VAT)

• Dividend tax

• Capital gain tax

Tax Return Submission

The person responsible for a business must submit a tax return to the Inland Revenue Department (IRD) annually.

• Tax returns for limited companies or partnerships are typically issued in April each year.

• Salaries tax returns are generally issued in May each year.

• The deadline for submitting tax returns is 1 month from the date of issue.

Our Services Include:

• Providing tax advisory and tax planning to minimize tax liabilities in a legitimate manner

• Acting as Tax Representative for individuals or companies

• Preparing and filing tax returns, tax computations, and declarations for:

  • Profit tax

  • Salaries tax

  • Property tax

  • Employer's Return of Remuneration and Pensions

• Applying for extensions of tax return submission deadlines

• Applying for holdover of provisional tax

• Assisting with objections to tax assessments

• Supporting responses to tax queries from the IRD

• Assisting with applications for offshore income exemption claims

• Conducting tax field audits and investigations