Hong Kong has a simple and competitive tax regime, with a low tax rate and few exemptions. The Inland Revenue Department (IRD) is responsible for administering the tax system in Hong Kong.
The main taxes in Hong Kong are:
Salaries tax: This is a progressive tax on income from employment, office, or pension. The tax rate ranges from 2% to 15%, depending on the taxpayer's income level.
Profits tax: This is a tax on business profits. The standard profits tax rate is 16.5%.
Property tax: This is a tax on rental income from immovable property in Hong Kong. The standard property tax rate is 15%.
Other taxes in Hong Kong include:
Stamp duty: This is a tax on certain transactions, such as the transfer of property or the issuance of shares.
Betting duty: This is a tax on bets placed on horse races and other sporting events.
Hotel accommodation tax: This is a tax on the room rate of hotels and guesthouses.
Residents of Hong Kong are only taxed on their income from Hong Kong sources. Non-residents are only taxed on their income from Hong Kong sources, unless they are considered to be tax resident in Hong Kong under the relevant double tax treaty.
The tax year in Hong Kong runs from April 1 to March 31. Individuals are required to file tax returns with the IRD by April 30 each year. Businesses are required to file tax returns with the IRD by six months after the end of their accounting period.
The IRD offers a number of online services to help taxpayers comply with their tax obligations. These services include eTAX, which allows taxpayers to file tax returns, make tax payments, and view their tax records electronically.
For more information on the Hong Kong tax system, please visit the IRD website.
How Bestar can Help
Bestar is a full-service accounting firm in Hong Kong that can help you with all of your tax compliance needs. We have a team of experienced and qualified accountants who can help you to:
Calculate your tax liability for all relevant taxes in Hong Kong, including salaries tax, profits tax, property tax, stamp duty, betting duty, and hotel accommodation tax.
Prepare and submit your tax returns to the Inland Revenue Department (IRD).
Track your tax payments and ensure that you are meeting all of your tax obligations.
Manage your tax records and ensure that you are compliant with all of the IRD's requirements.
Represent you in any tax audits or disputes.
In addition to our general tax compliance services, we also offer a number of specific services that can be helpful for taxpayers in Hong Kong. For example, we can help you to:
Establish a tax residency and domicile in Hong Kong.
Structure your business to minimize your tax liability.
Claim all available tax deductions and credits.
Take advantage of tax treaties between Hong Kong and other countries.
Apply for tax rulings from the IRD.
We understand that tax compliance can be complex and time-consuming, especially for businesses and individuals with international affairs. That's why we offer a comprehensive range of tax services to help you to meet all of your tax obligations in Hong Kong. We are committed to providing our clients with the highest quality of service and support.
Here are some specific examples of how Bestar Accounting can help you with your tax compliance in Hong Kong:
We can help you to set up a new business in Hong Kong and register for all relevant taxes.
We can help you to prepare and submit your annual profits tax return and business tax return.
We can help you to track your rental income and expenses, and to claim the property interest allowance.
We can help you to calculate your capital gains tax liability on the sale of assets in Hong Kong.
We can help you to apply for a tax residency certificate from the IRD.
We can also help you with more complex tax issues, such as:
Transfer pricing arrangements.
Permanent establishment issues.
Tax avoidance and evasion investigations.
Double tax treaty relief.
If you are looking for a reliable and experienced accounting firm to help you with your tax compliance in Hong Kong, please contact Bestar today. We offer a free initial consultation to discuss your tax needs and how we can help you.