Tax Return

Profits Tax

Profits tax is payable by every company carrying on a trade, profession or business in Hong Kong on profits arising in or derived from Hong Kong from that trade, profession or business. Following incorporation, companies are generally tracked by the tax authority and issued with a tax return for the first anticipated "year of assessment". Even when no tax return has been issued, however, the company has an obligation to notify the tax authority if assessable profits have arisen.

Assessable profits of corporation are taxed at the corporate tax rate of 16.5%.  There are some tax incentives for special business operations, such as tax exemption for profits derived by offshore funds and profits derived from operating ships in Hong Kong.

The company should meet the statutory deadlines for submitting tax returns every year, and missed deadlines can lead to substantial penalties. Our team assists in timely preparation of tax returns and advises on tax authority enquiries into tax returns.

Employer’s Return

The Employer's Return is issued by the Inland Revenue Department every year for the purpose of reporting the amount of remuneration, including salaries, wages, commission etc, paid to each employee during a year of assessment. All employers are required to furnish the return within one month from the date of issue, unless an application for extension in writing is filed with the Inland Revenue Department (IRD) on or before deadline for submission. A 'NIL' return of BIR56A is still required even if you have no employees or pensioners chargeable to Salaries Tax.

Our company provides services in preparing the Employer’s Return. To ease your company administration work, our team also assists in Payroll Services and offer efficient package in organizing payments to employees. Click here to find out more.

Individual Tax Return

Every taxpayer is required to notify the Commissioner of Inland Revenue that he/she is chargeable to tax no later than four months after the end of the year of assessment in which he/she is chargeable. This includes Income Tax, Salaries Tax, Profits Tax and Property Tax. The Inland Revenue Department may issue a tax return form to the employee requiring him/her to give an estimate of his/her income for the period from commencement to the following 31 March. On the basis of this estimate, the Inland Revenue Department may assess the employee to provisional salaries tax.

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