Inno Taxation Service

Despite the simple taxation system adopted by Hong Kong, there are stringent legal requirements on the compliance of the relevant laws. Severe penalties or even prosecution may be imposed on individuals or companies which fail to comply the laws.

Inno has the professional knowledge and expertise to assist individuals and companies to ensure compliance of the relevant laws. In addition, we are experienced in setting up legitimate tax planning arrangement in order to reduce the tax burden.

On the other hand, the Inland Revenue Department is increasing active in conducting tax audit and tax investigation on taxpayers in resent years. Since these proceedings often involve the provision of very detailed information for several years and lengthy communication with the IRD, they impose tremendous pressure on the taxpayers. Inno's experience and expertise in handling tax audit and tax investigation will provide useful advices to significant reduce the psychological pressure and workload of the taxpayers.

We set out below a brief summery of the Hong Kong taxation system.

Hong Kong has a simple taxation system. The major taxes are as follows:

Profits Tax
Salaries Tax
Properties Tax
Stamp Duty

Corporations and companies with Hong Kong sourced income are subject to Hong Kong profits tax. It is important to note that, not only Hong Kong companies, all corporations and companies which derive income from Hong Kong, including foreign companies, are subject to Hong Kong profits tax.

In general, companies are required to complete and file Hong Kong profits tax return on an annual basis. The due date for the submission of the tax return is one month after the issuance date stated in the tax return. Extension of the due date may be applied, which is subject to the Inland Revenue Department's ("IRD") approval.

On the other hand, tax representative may apply for a block extension for their clients. The extended due date varies between companies based on their accounting year-end date. The following table summarized the extended due date for the respective accounting year-end.