Tax

Hong Kong has earned itself a reputation for not only being a gateway into business in China but also an incredibly business-friendly city thanks to its low tax rates. Corporations are only required to pay 8.25% tax on assessable profits up to HK$ 2,000,000, or 16.5% on assessable profits over HK$ 2,000,000.

Company tax returns can be either prepared manually or with the help of software. In Hong Kong, businesses have the option of submitting their tax returns electronically or in person. After calculating how much tax your company owes, you must then submit your application to the Inland Revenue Department. For more information, as well as profits tax forms and other supplementary documents, refer to the IRD’s website. Filing your company tax returns can be a complicated and stressful process. BoardRoom can help take this pressure off your businesses’ shoulders and ensure complete compliance through efficient and professional services. Please contact us for assistance on your tax filing matters.

Tax advisors are responsible for providing consultation and guidance to companies when it comes to navigating all tax compliance matters. They will help businesses come up with plans to prepare for tax, find out the minimum amount of tax payable while staying completely compliant, and help prepare for your companies financial future.

Staying tax compliant is of the utmost importance to your business. Not only can it cause significant trouble, time, and effort in the future, you can incur significant financial losses. Any tax not paid in Hong Kong will be deemed to be in default. The Hong Kong government specifies that if the first installment is not paid on time, the second installment will be due immediately. Following this, the Commissioner of Inland Revenue will initiate recovery actions, in which an additional 5% surcharge is added onto the entire balance.

Staying tax compliant is a matter of keeping your finances organised and having a keen understanding of the tax laws and regulations in Hong Kong. This can be both a time consuming, and stressful task, so many companies prefer to outsource the work to professionals who can ensure zero mistakes are made and that it is done in a timely manner. At BoardRoom, we help countless businesses in all industries and of all sizes stay tax compliant each financial year. Our team will monitor statutory tax filing deadlines, work closely with you to file them properly, prepare and review tax returns and highlight any potential issues before submitting them. We can also act as tax advisors and help with applications for Hong Kong tax incentives.

Tax compliance refers to the act of following tax regulations and laws in your country. Any company that does not follow tax compliance steps is at risk of breaking the law, which can be disastrous for the success of your company. Tax planning, on the other hand, refers to the act of analysing your company’s finances in order to ensure that you are tax compliant and that you pay the lowest amount of tax legally possible to maximise profits.

Hong Kong has remained an attractive city for businesses thanks to favourable taxation policies. For example, businesses who turn an annual profit of less than HK$ 2,000,000 will only be required to pay a tax of 8.25%, half the normal HK tax rate. The Inland Revenue Department has released several tax measures in its 2021-22 budget, including reducing profits tax for businesses, waiving business registration fees, and increasing the rate of ad valorem stamp duty. In addition, the IRD has issued policies regarding Double Taxation Relief, which is particularly helpful if your business is related to airline or shipping incomes.

A tax filing service is where you employ the help of a third-party tax filing provider to help you stay up to date and compliant with all your tax matters. Tax filing services from a company like BoardRoom will help you meet all the relevant deadlines on time, understand and calculate how much tax you need to pay and prepare all the necessary documentation for you to approve and sign. Some businesses will even go the extra mile and help you apply for Hong Kong tax incentives that may benefit your company.

Tax advisory services will help your business by providing consultatory help and guidance when it comes to navigating complex tax matters. Tax advisory services will help you prepare for tax, stay compliant with all the tax regulations in Hong Kong, advise on corporate structure, review business flow and contracts, advising on inbound and outbound investments, and much more.

BoardRoom can help with a range of tax services, including income tax compliance, cross-border tax advisory services, country-by-country filing, and more. Our team of specialists has years of experience working with companies in all industries and of all sizes. With a personalised solution for each business, we can help you stay tax compliant, ensure you pay the lowest amount of tax, and help drive long-term success. Contact our taxation specialists today to find out more.