Tax Articles

As a business owner traveling between Hong Kong and Australia, have you ever worried that the same profit will be taxed twice in both places, cannibalizing your business profits? This nightmare of double taxation can cost companies tens of thousands of dollars at any time. Fortunately, the Comprehensive Double Taxation Agreement (DTA) between Hong Kong and Australia came into effect on December 12, 2019, providing you with a clear blueprint to avoid tax losses while maximizing your cross-border business opportunities. This article will provide an in-depth analysis of this important...

Did you know? Misclassification of expenses is one of the main reasons why Hong Kong businesses face tax penalties and assessment adjustments. Under Hong Kong’s two-tier profits tax system, accurately classifying expenses is not only a compliance requirement, but also a key strategy to improve tax efficiency and save real money. This article will break down the most common pitfalls when filing corporate taxes and provide practical advice to help you avoid costly mistakes.

Do you feel overwhelmed after logging into your eTAX account and finding an official notice issued by the Inland Revenue Department? In Hong Kong's increasingly digital tax environment, it is crucial for every taxpayer to know how to correctly receive, understand and respond to communications from the Inland Revenue Department through the "eTAX" platform. Whether you are receiving a tax return for the first time or dealing with a complex assessment enquiry, knowing the correct procedures and deadlines can help you avoid fines, surcharges and unnecessary stress.

📋 Key Facts at a Glance Standard Rates: 5% of rateable value for all non-domestic properties and domestic properties with rateable value ≤ HK$550,000 Prog...

📋 Key Facts at a Glance Stock Transfer Stamp Duty: 0.1% per party (0.2% total) effective November 17, 2023 Property Stamp Duty: Progressive rates from HK$1...

📋 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...

📋 Key Facts at a Glance Simplified Stamp Duty Regime: All demand-side measures (BSD, SSD, NRSD) abolished on February 28, 2024. All buyers now pay the same...

📋 Key Facts at a Glance Core Principle: Deductions must be wholly and exclusively incurred in the production of assessable profits (Inland Revenue Ordinanc...

📋 Key Facts at a Glance No Simple Day Count: Hong Kong has no statutory 183-day rule. Residency is determined by the nature of an individual's presence and...

📋 Key Facts at a Glance Territorial Tax System: Only Hong Kong-sourced income is taxed, not worldwide income No Capital Gains Tax: Profits from investments...

📋 Key Facts at a Glance Tax Concession Rate: 0% profits tax on qualifying transactions for eligible Family-owned Investment Holding Vehicles (FIHVs) Effect...

📋 Key Facts at a Glance Carbon Neutrality Target: Hong Kong aims for carbon neutrality before 2050 with interim 50% reduction by 2035 (vs 2005 levels) Curr...