Corporate Tax Compliance
Professional corporate tax services ensuring your business efficiently meets all tax obligations and fully complies with Hong Kong tax regulations.
Corporate Tax Services
At Hong Kong Business Services Centre Limited, we provide comprehensive tax services for businesses operating in Hong Kong. Our team ensures your company complies with all tax regulations while maximizing available tax benefits and deductions.
Tax Compliance
Ensuring your business adheres to all tax regulations and filing requirements.
Cross-Border Tax Advisory
Professional guidance on international tax matters and overseas expansion strategies.
Tax Planning
Strategic tax planning to legally minimize your business's tax burden.
Hong Kong Tax System Overview
Hong Kong's tax system is relatively simple compared to many jurisdictions. The territory operates a territorial tax system where only profits arising in or derived from Hong Kong are taxable.
Profits Tax
The standard profits tax rate is 16.5% for corporations and 15% for unincorporated businesses. A two-tiered profits tax system is available for eligible enterprises.
No Sales or VAT
Hong Kong does not impose general sales tax, value-added tax (VAT), or business tax commonly found in other jurisdictions.
Territorial Basis
Hong Kong uses a territorial basis of taxation. Only profits arising in or derived from Hong Kong are subject to profits tax. Offshore profits are generally not taxable.
Two-Tiered Profits Tax System
Under the two-tiered profits tax system, the profits tax rate for the first HK$2 million of assessable profits is reduced to enhance the competitive advantage of Hong Kong's tax regime.
| Entity Type | First HK$2 Million | Remainder |
|---|---|---|
| Corporations | 8.25% | 16.5% |
| Unincorporated Businesses | 7.5% | 15% |
Restrictions
The two-tiered rates apply to all entities with assessable profits in Hong Kong, except when an entity has one or more connected entities that have already been nominated for the two-tiered rates.
Connected Entities
- One entity has control over the other
- Both entities are under the control of the same entity
- In the case of natural persons running sole proprietorships, the same person running multiple businesses
Annual Tax Filing Requirements
Every Hong Kong limited company will receive its first profits tax return approximately 18 months after incorporation. Regardless of whether the company has conducted business in Hong Kong, the tax return must be submitted with audited financial statements by the deadline (typically 3 months from issuance).
Financial Statements
The first financial statements should be prepared within 18 months of incorporation, and annually thereafter. Companies must maintain accounting records for at least 7 years, as required by the Companies Ordinance.
Tax Representation
We can act as your company's tax representative to help handle tax-related matters and communications with the tax authorities.
Tax Investigation
The Inland Revenue Department conducts sample checks on suspicious companies each year. Proper and careful handling is crucial to avoid and minimize potential losses and penalties.
Tax Exemption
Tax exemption is a feature of Hong Kong's tax system. Hong Kong applies the territorial source concept of taxation. Generally, certain income generated outside Hong Kong by a Hong Kong company may not be subject to Hong Kong tax.
Our Corporate Tax Services
Corporate Tax Returns
Professional corporate tax filing services:
- Preparation and submission of profits tax returns
- Compliance with statutory filing deadlines
- Maximization of available tax deductions
Tax Compliance
Comprehensive tax compliance support:
- Tax risk assessment
- Compliance reviews and monitoring
- Statutory tax filing assistance
Tax Advisory
Professional tax strategy advice:
- Corporate tax structure optimization
- Merger and acquisition tax advisory
- International tax planning
Stay Compliant with Professional Tax Support
Our corporate tax team helps businesses navigate the complexities of Hong Kong's tax system while identifying opportunities to optimize your tax position. Contact us today for professional corporate tax services.
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