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Hong Kong Tax Compliance Services

 

We specialize in providing comprehensive tax compliance services tailored to meet the unique needs of businesses operating in Hong Kong. With our deep understanding of Hong Kong's tax regulations and extensive experience in tax planning and compliance, we offer reliable and efficient solutions to help clients navigate the complexities of tax compliance, minimize tax risks, and optimize their tax position.

Our suite of tax compliance services encompasses a wide range of tasks, including corporate income tax filing, corporate income tax exemption applications, payroll tax reporting, and indirect taxes. By outsourcing these essential functions, our clients can ensure that their tax obligations are met accurately and on time, reducing the risk of penalties or fines and allowing them to focus on their core business activities.

Furthermore, our team of qualified tax professionals provides personalized advisory services to help clients understand and comply with Hong Kong's tax laws and regulations. From tax planning and structuring to tax optimization strategies, we offer strategic insights and practical solutions tailored to each client's unique needs and goals. Whether you're a small startup or a large corporation, we are committed to delivering exceptional tax compliance services that drive growth, profitability, and long-term success in Hong Kong's dynamic business environment.

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Tax Regulations in Hong Kong

In Hong Kong, tax regulations are governed by the Inland Revenue Ordinance (IRO) and administered by the Inland Revenue Department (IRD). Here are some key tax regulations in Hong Kong:

Territorial Tax System

Hong Kong adopts a territorial tax system, which means that only income sourced in Hong Kong is subject to taxation. Income earned outside of Hong Kong, even if remitted to Hong Kong, is generally not subject to tax.

 

Profits Tax

Corporations and unincorporated businesses carrying on a trade, profession, or business in Hong Kong are subject to Profits Tax on profits derived from Hong Kong. The 1st HKD $2,000,000 profit is taxed at 8.25% and the excess above that amount is taxed at 16.5%; if your business qualifies for offshore tax exemption then taxation is 0%.

Salaries Tax

Individuals who are employed in Hong Kong or derive income from any office, employment, or pension in Hong Kong are subject to Salaries Tax on their income. Salaries Tax is charged at progressive rates, with a maximum rate of 15%.

Property Tax

Owners of real estate in Hong Kong are subject to Property Tax on the rental income derived from their properties. The Property Tax rate is currently 15% of the net assessable value of the property.

Stamp Duty

Stamp Duty is levied on various types of transactions, including property transactions, stock transfers, and certain legal documents. Rates vary depending on the nature of the transaction.

Goods and Services Tax (GST)

Hong Kong does not impose GST or Value Added Tax (VAT) on goods and services, making it an attractive location for international trade and business.

Tax Treaties

Hong Kong has entered into comprehensive Double Taxation Agreements (DTAs) with various jurisdictions to avoid double taxation and prevent tax evasion. These treaties provide for reduced withholding tax rates on certain types of income.

Tax Reporting and Compliance

Taxpayers in Hong Kong are required to comply with various reporting and compliance requirements, including filing tax returns, maintaining proper accounting records, and cooperating with tax audits conducted by the IRD.

Understanding and adhering to these tax regulations is essential for businesses and individuals operating in Hong Kong to ensure compliance and minimize tax liabilities. 

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How can we help you

We offer comprehensive tax compliance services in Hong Kong to support your business operations and ensure compliance with local tax regulations. Here's how we can assist you:

Tax Planning and Advisory

Our team of qualified tax professionals provides strategic tax planning and advisory services tailored to your specific business needs and objectives. We help you understand your tax obligations, identify tax-saving opportunities, and optimize your tax position while ensuring compliance with Hong Kong's tax laws and regulations.

Tax Registration and Filing

We assist you in registering for various taxes in Hong Kong, including Profits Tax, Salaries Tax, Property Tax, and Stamp Duty, as applicable to your business activities. We prepare and file your tax returns accurately and on time, ensuring compliance with reporting requirements and minimizing the risk of penalties or fines.

Tax Compliance Reviews

We conduct comprehensive reviews of your tax compliance processes and procedures to identify areas of potential risk or non-compliance. Our team assesses your tax filings, accounting records, and internal controls to ensure that they align with regulatory requirements and best practices.

Tax Audit Support

In the event of a tax audit or investigation by the Inland Revenue Department (IRD), we provide expert support and representation to help you navigate the process effectively. Our team liaises with tax authorities on your behalf, prepares documentation, and resolves any issues that may arise during the audit process.

Training and Education

We offer training and education sessions to your finance and accounting teams to enhance their understanding of tax compliance requirements and best practices. Our goal is to empower your team with the knowledge and skills they need to ensure ongoing compliance with Hong Kong's tax regulations.

 

By partnering with us for your tax compliance needs in Hong Kong, you can benefit from our expertise, efficiency, and personalized service, allowing you to focus on running and growing your business with confidence.

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Meet our Advisors

With a robust background spanning over two decades, Sven has been instrumental in guiding numerous foreign investors through the intricacies of entering the China and Hong Kong markets. Having served as a strategic leader for numerous ventures, from burgeoning startups to established publicly-listed companies, Sven is renowned for his adeptness in formulating market strategies and implementing business models that drive sustainable growth and profitability in the dynamic Asian market landscape.

Sven Koehler

Managing Director

Sven Koehler

Kristina has worked with over 750 international companies, from startups to publicly-listed companies, across industries and sectors on their market strategy, implementation of business models, and helping them to focus on their growth in China and

Hong Kong.

Kristina Koehler-Coluccia

Kristina Koehler-Coluccia

Head of Business Advisory

Talk to an expert

Schedule a 30-mins complimentary, no-obligation call to see how Woodburn can help you with your tax compliance needs for your Hong Kong Company.

In this call we will discuss:

  • The process to manage the tax compliance requirements for your Hong Kong Company

  • The deadlines and timelines for your tax returns

  • Woodburn's advantage

  • Our Hong Kong Tax Compliance service fees

  • And the next steps

Our calls are automatically scheduled via Zoom. We can schedule the calls via Teams, WeChat or WhatsApp upon direct request. 

Our calls are available from Monday-Friday from 8am to 5pm CEST and Wednesday until 9pm CEST (for those based in the Americas).

Tax updates from Hong Kong

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