Employees are subject to salaries tax on their employment income and self-employed persons are subject to profits tax on their business income. Since the expenses claimed under Profits Tax are more and easier than those under Salaries Tax, to reduce the tax, the employee will sign a service company contract with the employer. employment relationship. … Read more
If an employee has not received accrued income for any year of assessment, such income shall not be included in assessable income. Subsequent repayments or remuneration paid by the employer to the employee during employment, at the end of the employment contract, or upon retirement, regardless of whether the payment is made by the employer … Read more
Company operations need to ensure the complete filing of important documents, among which the “Certificate of Authority for Directors” is one of the indispensable documents. The “Certificate of Authority for Directors” lists the information of all members involved in the operation and financing of the company to prove and record their duties. In addition to … Read more
Completing the company registration process does not mean that you can start business immediately because to legally operate certain businesses in Hong Kong, you need to apply for the necessary business licenses and permits related to a certain business from different government departments before you can officially operate the business. The general process takes about … Read more
Buyers who are not first-time homebuyers or who already own residential property are now paying an ad valorem stamp duty of 15% on the purchase of a residential property. Since the stamp duty involved in buying and selling a property in the name of a limited company is only 0.26%, which is much lower than … Read more
After the tax bureau has opened the taxpayer’s file, to understand his business operations and personal asset affairs, whether it is an on-site audit or an in-depth investigation, the tax bureau staff will send a letter to invite the taxpayer to make an appointment for the first meeting. At that time, taxpayers will need to … Read more
In the process of auditing/investigating accounts, it is often the taxpayer who lacks complete accounting records. Nevertheless, to satisfy as far as possible, the staff of the Inland Revenue Department that their accounting records are correct and reliable, a taxpayer should appoint a tax representative to conduct a detailed analysis of the taxpayer’s deposit/current and … Read more
According to the Business Registration Ordinance, business registration is required for any form of business. In recent years, in view of the financial situation of Hong Kong, upon the suggestion of the Financial Secretary, the business registration fee has been waived by HK$2,000 until March 31, 2023. The Business Registration Ordinance (Amendment to Schedule 2) … Read more
Charities in Hong Kong have attracted the attention of the public. Since the establishment of relevant organizations has made a lot of contributions to the society, the Government has been providing various support to accredited charities, including Section 88 of the Inland Revenue Ordinance. What is the content? How can taxpayers find accredited charities? This … Read more
There have been several cases in recent years of taxpayers jailed for falsely claiming the dependent parent allowance. One was a taxpayer claiming a tax-free allowance for his deceased father, which resulted in a four-month jail term, suspended for 18 months and a fine. It is mentioned here that if a taxpayer or his/her spouse … Read more