Personal Assessment

Centre O ACCOUNTING & AUDITING

If you are a sole proprietor, a partner in a business or a property owner, you can elect for personal assessment if you are eligible. This may help to reduce the tax you need to pay by aggregating your assessable income under salaries tax, profits tax and property tax, and making adjustments for the deductions. The balance, if any, will …

Double Taxation Relief

Centre O ACCOUNTING & AUDITING

Double taxation arises when two or more tax jurisdictions overlap, such that the same item of income or profit is subject to tax in each. Hong Kong adopts the territoriality basis of taxation, whereby only income / profit sourced in Hong Kong is subject to tax. However, many countries which tax their residents on a worldwide basis also provide their …

How to proof my income is offshore-sourced?

Centre O ACCOUNTING & AUDITING

Offshore claim is not automatic, it needs to be applied through application to IRD. Usually, offshore-sourced income must at least fulfill all of the following conditions: Proof of profits not derived from Hong Kong with sufficient proofs of transactions which give rise to such profits are provided. No business activities which produced the relevant profits held in Hong Kong The …

Is my income liable to profit tax in Hong Kong?

Centre O ACCOUNTING & AUDITING

The territorial concept of taxation in Hong Kong recognises that a Hong Kong business may generate profits from different geographical sources. Only profits sourced in Hong Kong may be subject to profits tax (15% on assessable profit). Profits sourced outside Hong Kong are possibly not taxable. However the distinction between onshore and offshore profits is often an issue disputable between …