The primary legislation governing income taxation in Hong Kong is the Inland Revenue Ordinance (IRO), supplemented by the Inland Revenue Rules (IRR) (Cap. 112A). The IRO establishes three distinct schedules of income taxation:
Property Tax: Levied on owners of Hong Kong land and/or buildings in respect of rental income derived from leasing or licensing the property.
Salaries Tax: Charged on individuals earning Hong Kong-sourced income from employment, holding an office, or receiving a pension.
Profits Tax: Charged under Section 14 of the IRO on any person carrying on a trade, profession, or business in Hong Kong. It applies to assessable profits arising in or derived from Hong Kong during the year of assessment, excluding profits from the sale of capital assets.
Notable Absences: Hong Kong imposes no tax on dividends, sales tax, consumption tax, value-added tax (VAT), withholding tax on dividends or interest, general capital gains tax (though specific exceptions exist), or estate duty.
Our experienced tax team provides comprehensive services for companies and individuals, including:
Tax Representation: Acting as your authorized representative before the Inland Revenue Department (IRD).
Tax Return Filing: Accurate preparation and submission of all required tax returns.
Tax Computation: Precise calculation of tax liabilities.
Employer’s Return Filing: Preparation and submission of Forms BIR56A and BIR56B.
Tax Planning: Strategic advice to optimize your tax position efficiently and compliantly.