Tax Articles

📋 Key Facts at a Glance Basic Personal Allowance: HK$132,000 for 2024/25 tax year - your tax-free threshold Tax Year: April 1 to March 31 (2024/25 year run...

📋 Key Facts at a Glance Hong Kong Free Port Status: No customs duties on most imported goods—only liquor, tobacco, hydrocarbon oil, and methyl alcohol are...

Imagine that your family has investments in Singapore, properties in Europe, and business income in mainland China. How can you navigate the maze of international tax rules and avoid being taxed twice on the same income? For cross-border families managing wealth across multiple jurisdictions, Hong Kong’s extensive network of double taxation agreements (DTAs) provides a powerful solution. These agreements clarify tax liabilities, reduce withholding rates and prevent double taxation, making...

Have you ever wondered what will happen to your properties, investments and digital assets in Hong Kong when you are away? Although Hong Kong has abolished inheritance tax since 2006, making it one of the most inheritance-friendly jurisdictions in the world, proper estate planning is still crucial. A well-written will can ensure that your assets are distributed according to your wishes, rather than according to default legal rules that may exclude loved ones or cause family disputes. This guide will explore Hong Kong will planning...

I received a tax assessment notice from the tax bureau and have any objection to the tax assessment result? You are not alone. In today's increasingly complex tax environment, with the global BEPS (Base Erosion and Profit Shifting) initiative, the expanded Foreign Income Exemption (FSIE) system, and stricter scrutiny from tax authorities, tax disputes are becoming more and more common. When faced with a dispute, the key question is: Should you fight to the end through formal appeals, or is settlement negotiation a wiser strategy? This refers to...

Are you overseas but serving as a director of a Hong Kong company? You may be surprised to learn that your actual place of residence does not necessarily determine your tax liability. Hong Kong’s unique territorial source taxation system means that even if you have never set foot in Hong Kong, your director’s fee may still be subject to tax in Hong Kong. This comprehensive guide for 2024-2025 will break down for you in detail the Hong Kong tax reporting requirements that non-Hong Kong resident directors must understand.

Is your Hong Kong business ready for a new era of international tax compliance? As the profit distribution of multinational companies faces unprecedented scrutiny, Hong Kong has fully adopted the transfer pricing guidelines of the Organization for Economic Co-operation and Development (OECD) BEPS Action Plans 8-10. This comprehensive reform requires companies to link profit distribution with real economic substance and value creation activities, otherwise they may face major tax adjustments and penalties. Let’s explore what this means for your business in Asia’s premier business hub...

📋 Key Facts at a Glance Documentation Period: Keep tax records for 7 years - the IRD can audit returns up to 6 years back (10 years for fraud) Top Deductio...

📋 Key Facts at a Glance Fact 1: Hong Kong abolished estate duty in 2006, making it attractive for succession planning, but trusts don't provide blanket tax...

📋 Key Facts at a Glance Stock Transfer Duty: 0.1% per party (0.2% total) effective November 17, 2023 Property Cooling Measures Abolished: BSD, SSD, and NRS...

📋 Key Facts at a Glance Tax Liability Start Date: Property tax obligations begin from the date of the deceased's death, not when probate is granted Propert...

Is your business prepared for Hong Kong’s rapidly changing tax dispute environment? As global tax reforms and digital tax administration initiatives converge, companies operating in Hong Kong are facing unprecedented scrutiny and complexity. From the implementation of the global minimum tax (BEPS 2.0), to the strengthening of transfer pricing enforcement, to the innovation of digital tax filing platforms, understanding these trends is no longer an option, but the key to effectively managing tax risks and ensuring business continuity.