Tax Saving Tip #4: Hong Kong Surplus Waiver

Marketing ACCOUNTING & AUDITING

ATTENTION BUSINESS OWNER: Hong Kong’s government budget has consistently saved you money. You don’t believe me? Well, Hong Kong has a tax-friendly law that particularly benefits SME’s. When Hong Kong runs a government budget surplus (brings in more money than they spend) part of your tax is waived. And the waiver is no laughable amount; it is 75 percent of your taxes up to HK$20,000.

Let’s look at an example. If your limited company turns a profit of HK$100,000 then normally the taxes your business would be HK$100,000*16.5%= HK$16,500.  But due to a surplus that year 75% of the tax is waived, thus your actual taxes due would only be HK$16,500*25%= HK$4,125.

Sounds too good to be true? It gets even better because you can expect a government budget surplus regularly. In fact, the Hong Kong government has not run a budget deficit in fourteen years. Further, the government reserves have steadily increased to over three trillion dollars. The tax waiver in Hong Kong will be sure to save you and your company a nice lump of money each year!

At Centre O, we can handle your accounting & auditing. Let’s see if you can also benefit from the Hong Kong tax waiver. For further details, please contact us at sales@centreo.hk.

You may also be interested in these other blog articles:

http://centreo.hk/the-difference-between-financial-statement-annual-return-and-audit-report/

http://centreo.hk/companys-financial-year-ends/   

http://centreo.hk/company-audit-faqs/

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