Sole Proprietor Tax Specialist

Hong Kong Profits Tax for Sole Proprietors

Running your own business as a sole proprietor in HK? You pay profits tax — not salaries tax — at progressive rates on your assessable profits. With the right deductions, depreciation allowances, and offshore income treatment, your effective rate can be significantly lower than you think.

香港會計師公會註冊 24小時回覆 固定收費 100% 保密
免費諮詢
7.5% Profits tax rate first HKD 2M (unincorporated)
15% Standard profits tax rate above HKD 2M
HKD 2,000 Annual business registration fee

Sole Proprietor Tax Specialist

Running your own business as a sole proprietor in HK? You pay profits tax — not salaries tax — at progressive rates on your assessable profits. With the right deductions, depreciation allowances, and offshore income treatment, your effective rate can be significantly lower than you think.

⚠️

⚠ Sole Proprietors Must File Profits Tax — Not Salaries Tax

A common mistake: sole proprietors who previously worked as employees try to file BIR60 (salaries tax) instead of BIR52 (profits tax). The two tax systems are separate. Filing the wrong form means missing legitimate business deductions and potentially being assessed incorrectly. As a sole proprietor, your "salary" from your own business is not a deductible expense — your profits are assessed in full after allowable business costs.

常見困擾

您是否正面對以下稅務問題？

Business Registration Compliance

All sole proprietors must register with the Business Registration Office (BRO) within 1 month of commencing business. Non-registration is a criminal offence.

⚠ Risk: Non-registration fine HKD 5,000 + 3 years' imprisonment

Profits Tax vs Salaries Tax

Sole proprietors pay profits tax on net business income — but can elect Personal Assessment to combine this with other income and claim additional allowances.

⚠ Risk: Missing Personal Assessment election → overpaying on combined income

What Counts as Allowable Expenses

Business expenses must be "wholly and exclusively" incurred in producing profits. Mixed personal/business costs require careful allocation.

⚠ Risk: IRD disallowing claimed expenses → higher assessed profits + penalties

Offshore Profits Claim

Profits from services rendered entirely outside HK are exempt from HK profits tax. The IRD requires strong evidence of offshore activities.

⚠ Risk: Unfounded offshore claim → IRD rejection + full assessment with interest
適合對象

適合對象

Freelancers and independent consultants

Professionals operating without a company structure, invoicing clients directly in their own name.

Tradespeople and service providers

Plumbers, electricians, tutors, coaches, and other sole traders operating in HK.

Creative professionals

Designers, photographers, writers, and artists earning project-based income.

Professional practitioners

Lawyers, accountants, and surveyors in sole practice (not partnership or company).

Online business operators

E-commerce, dropshippers, and online service providers without a corporate structure.

Those transitioning from employment to self-employment

Former employees setting up on their own and needing to understand the switch from salaries to profits tax.

服務範疇

服務範疇

Business Registration Setup

We advise on business name registration with the BRO and IRD notifications for profits tax purposes.

Including sole proprietorship vs partnership vs company comparison

Profits Tax Return Filing (BIR52)

We prepare your annual profits tax return with full profit and loss accounts.

Adjusted profits computation per IRO Schedules

Deductible Expense Optimisation

We identify all allowable business expenses, capital allowances, and depreciation claims.

Including home office proportion, vehicle costs, professional subscriptions

Offshore Profits Claim

Where business activities are conducted outside HK, we prepare a documented offshore income claim.

With travel records, client communications, and contract evidence

Growth & Incorporation Planning

When profits exceed HKD 2M, we model whether incorporation into a HK company provides tax savings.

Comparing 15% unincorporated rate vs 8.25% corporate rate on first HKD 2M
服務流程

簡單、高效、專業

1

Business Setup & Registration Advice

We advise on the most tax-efficient structure from day one of your business.

1 day
2

Bookkeeping & Records Review

We review your income and expense records for the tax year and identify missing documentation.

2–3 days
3

Profits Computation

We prepare a tax-adjusted profits computation with all allowable deductions and capital allowances.

2–3 days
4

BIR52 Filing & IRD Correspondence

We file your profits tax return and respond to any IRD follow-up queries.

As required
準備好開始了嗎？ 無需承諾，隨時取消
預約免費諮詢
客戶成功案例

為真實客戶帶來真實成果

Case Study

Independent IT consultant — HK and Singapore clients

HKD 127,000 節省
  • Annual profits HKD 980,000
  • 45% of work performed in Singapore
  • Offshore claim for Singapore work approved
  • Assessable HK profits reduced to HKD 539,000
"TAX.hk prepared a thorough offshore claim with travel records and client emails. The IRD accepted it first time."
C
已驗證客戶 Case Study
Case Study

Freelance designer transitioning from employment

HKD 43,000 in first year 節省
  • Year 1 self-employment profits HKD 360,000
  • Equipment, software, co-working space deducted
  • Personal Assessment election made
  • Spouse allowance and mortgage interest also claimed
"I had no idea I could use Personal Assessment to combine my business profits with mortgage deductions. Game changer."
C
已驗證客戶 Case Study
★★★★★ 2,400+ 位客戶信賴我們的團隊
免費諮詢

免費專家諮詢

立即與資深稅務專家聯繫

  • 免費30分鐘初步諮詢
  • 資深註冊會計師為您服務
  • 無需承諾，隨時取消
HKICPA 註冊 24小時回覆 無需承諾

您的資料將受到嚴格保密。

選擇我們的理由

為何選擇 TAX.hk

深厚的香港稅務專業知識

我們的註冊會計師擁有15年以上香港稅務經驗，時刻掌握稅務局的最新動態。

透明固定收費

無按小時計費的意外開支。開始前清楚了解費用。

24小時回覆

我們於一個工作天內回覆所有查詢，緊急情況4小時內處理。

嚴格保密

所有客戶資料均依據嚴格的專業保密責任妥善保管。

常見問題

常見問題

快速解答您的疑問

For unincorporated businesses (sole proprietors and partnerships), the two-tiered profits tax rates apply: 7.5% on the first HKD 2 million of assessable profits, and 15% on profits above HKD 2 million. This is effectively a half-rate for the first HKD 2M compared to incorporated companies (8.25% / 16.5%).
No. You cannot pay yourself a deductible salary as a sole proprietor — you and the business are the same legal entity. Your entire net profit (after allowable business expenses) is assessed to profits tax. This is one of the key reasons profitable sole proprietors often incorporate — to enable a deductible director's salary.
Allowable deductions include: rent for business premises, employee salaries and MPF, professional services (legal, accounting), business insurance, marketing and advertising, professional subscriptions, trade-specific equipment depreciation, and a proportion of home office costs where your home is your principal place of business.
You need to demonstrate that the profit-generating activities — i.e., the services that earned the income — were performed outside HK. Evidence includes: overseas travel records, client meeting minutes, contracts signed abroad, foreign bank statements, and communications showing work was done offshore. The claim is made in your profits tax return with a covering letter.
You must register with the Business Registration Office (BRO) within 1 month of commencing your business. The annual registration fee is HKD 2,000 (plus a HKD 450 levy) for the first year. You must also notify the IRD that you have commenced a business, triggering your profits tax filing obligations.

準備好開始了嗎？

立即預約資深香港稅務專家的免費諮詢。

預約免費諮詢 查看我們的顧問
探索更多

相關服務

Digital Nomad Tax Specialist Digital Nomads & Location-Independent Workers
Commission Income Tax Specialist Sales Professionals & Commission Earners
Side Income Tax Specialist Salaried Workers with Secondary Income
Personal Tax Planning Specialist Professionals & High Earners Seeking Tax Optimisation

本頁面僅提供一般資訊。如需針對您個人情況的建議，請諮詢合資格的香港稅務專業人士。