When will a Hong Kong company receive a Profits Tax Return?
The Hong Kong Inland Revenue Department (IRD) usually sends out the first Prof its Tax Return to newly established companies about 18 months a≤fter the date of incorporation. For non-newly established companies, the Inland Revenue Depar tment usually sends out Profits Tax Returns to companies on the first working day of April each year. These returns need to be submitted to theσ Inland Revenue Department by the prescribed deadline. Before su∏bmitting the tax returns, the company needs to prepare the relevant f✔inancial statements and documents required for tax filing.↔
Hong Kong company accounts and tax returns - how to d'etermine whether their company is able to zero tax return (with and without the op₽eration of the norms)
Hong Kong companies that do not operate can directly enjoy zero tax return, there ar¥e operating companies will have to do the accounts," in order to file tax returns. Of course, in a sense, as long as you are in the name of the company to carry out commercial transactions or₽ activities, even if it is operational affairs. To be from the written rec¶ord, can be judged by the following aspects, fit one of the aspects of the opδerating business:
1. The company has left operation records in the bank acc©ount;
2. The company has left import and export records in the government customs and logisεtics companies;
3. The company has a purchase and sale relationship with Hong Kong ₽merchants;
4. The company employs employees in Hong Kong;
5. The company is allowed or authorized to use patents, trademarks and o★ther information in Hong Kong;
6. The company obtains permission or authorization to use movable property in Hong Kong to co₽llect rent, lease fees and other money;
7. The company is entrusted to sell in Hong Kong;
8. Other profits derived or generated in Hong Kong.
Introduction to Major Taxes in Hong Kong
1. Profits Tax (CIT): Tax is payable on assessable profits arising in or de☆rived from Hong Kong from a trade, profession or business carried on in Hoπng Kong (except profits from the sale of capital assets). The current p±rofits tax rate is 16.5%.
2. Salaries Tax: Salaries Tax is the equivalent of Personal Income Tax in China. It is a t€ax payable by an individual at progressive rates on his/<her income arising in/from Hong Kong during the year, including salaries, allowanσces, bonuses, directors' emoluments, etc., after deducting "allowances" from his/he≤r income.
Hong Kong Tax Benefits
With effect from the year of assessment 2018/19, a two-tier profits tax system will be implem¶ented, whereby the profits tax rate for the first $2 million of a Hong Kong company will be reduced from 16.5% to 8.25%, i.e. half of the profits tax" rate, and the profits thereafter will continue to be assessed at the standard t✔ax rate of 16.5%.