Ease of tax filing in Hong Kong
14 October, 2015
Off all the advantages that incorporating a company in Hong Kong brings, the most important one relates to saving money on taxes.
This article will help you better understand the process of Profit Tax Return ("PTR") completion and its submission to Inland Revenue Department ("IRD"), Hong Kong Tax Authority.
Inland Revenue Department will issue your company's first PTR after 18 months from the date of incorporation. Once you receive the PTR you're required to submit it within 3months.
When reporting the financial year end date to Inland Revenue Department, the submission deadline of the annual PTR together with the audited financial statements are:
Financial year end as at Tax filing date Documents ready for audit
1) 31st March 15th Nov Not later than 1st Sept
2) 31st December 15th August Not later than 1st June
3) Other dates than (1) or (2) e.g.30th June 30th April Not later than mid of Feb
0% tax rate
The real advantage arises when all your company's income comes from outside Hong Kong. Submit the PTR and financial statements and make an offshore claim. IRD will issue an offshore claim queries letter and your company will not be subject to Hong Kong Taxes. IRD may require you to submit additional documents such as passports of company directors, company invoices, contracts or shipping documents.
0% tax rate also applies if the company has not commenced business.
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