Tax Articles

📋 Key Facts at a Glance Estate Duty Abolished: Hong Kong abolished estate duty on February 11, 2006 – no inheritance tax applies to deaths occurring on or...

📋 Key Facts at a Glance Tax Systems: Hong Kong uses territorial taxation (only HK-sourced income), while Mainland China uses worldwide taxation for residen...

📋 Key Facts at a Glance Objection Deadline: One month from the date of issue of the notice of assessment Property Tax Rate: 15% flat rate on net assessable...

📋 Key Facts at a Glance Fifth Protocol Effective: Signed July 19, 2019; effective from January 1, 2020 (Mainland China) and April 1, 2020 (Hong Kong) Redu...

Did you know? Hong Kong companies can use up to 60% of their capital expenditures to deduct taxable profits in the first year of acquiring qualifying assets. Depreciation allowance is one of the most powerful tax planning tools under Hong Kong’s profits tax system, allowing companies to effectively optimize their tax status while recovering asset costs. Whether you're investing in new machinery, upgrading technology or expanding your business, knowing how to properly claim these allowances will have a significant impact on your bottom line.

Are you working in Hong Kong but confused about your tax responsibilities? As remote working and international assignments become increasingly common, understanding Hong Kong’s unique tax nexus rules has never been more important. Unlike many countries that tax residents on their worldwide income, Hong Kong adheres to the territorial source principle, where the focus is on where your income comes from rather than where you live. This article will explain in detail the concept of tax nexus, the 183-day rule, and how these factors determine your salary in Hong Kong...

Did you know? Hong Kong property owners have the opportunity to save tens of thousands in taxes through tax deductions throughout the mortgage period. Although many people are aware of the annual home loan interest deduction of HK$100,000, few fully understand how to maximize this tax benefit through strategic planning. This comprehensive guide will reveal how to transform your mortgage loan from a financial burden into a powerful tax-saving tool, effectively lowering your effective borrowing rate and saving you...

Did you know? Property owners in Hong Kong can significantly reduce their tax burden on rental income by making good use of legal tax deductions. Although property tax is fixed at 15% of the net assessable value, as long as you clearly understand which expenses are deductible and how to declare them correctly, you can save tens of thousands in taxes at any time every year. This comprehensive guide will reveal the legal tax-saving strategies commonly used by savvy landlords to help you maximize your rental returns while fully complying with Hong Kong tax regulations.

📋 Key Facts at a Glance Stock Transfer Rate: 0.2% total (0.1% buyer + 0.1% seller) effective from 17 November 2023 Property Transfer Rates: Progressive fro...

As a business owner in Hong Kong, you are balancing operational needs with strategic planning every day. But have you ever thought about how managing your Mandatory Provident Fund (MPF) account yourself will affect your retirement savings and business operations? Self-managing an MPF ​​account gives you unprecedented control over your retirement investments, but it comes with significant responsibilities that can impact your company's cash flow, compliance status, and even your personal time. This comprehensive guide...

In Hong Kong's dynamic economic environment, are you juggling multiple jobs? Whether you're a freelancer with multiple clients, a professional with a side hustle, or a multi-tasker, managing your payroll taxes can get a lot more complicated. According to statistics, more than 15% of Hong Kong’s working population has more than one job. It is crucial to understand how to deal with the regulations of the Inland Revenue Department. This comprehensive guide will take you from the basic obligations to the advanced aspects of optimizing your tax position...

📋 Key Facts at a Glance Two-Tiered Profits Tax: 8.25% on first HK$2 million, 16.5% thereafter for corporations R&D Super Deduction: 300% on first HK$2 mill...