CAN I CLAIM OVERSEAS INSURANCE FOR A HONG KONG EMPLOYEE?

ACCOUNTING & AUDITING

QUESTION 1:

My company in the UK paid a medical plan for a Hong Kong Employee, does it help to claim deductions on tax purpose under a Hong Kong Limited Company?

ANSWER 1:

No, insurance plan in the UK is not a deductible expense under Hong Kong Profit Tax. Firstly, the expense is not paying for trading purposes. Secondly, it is difficult to explain the relationship between Healthcare in the UK and the profit generated in Hong Kong.

QUESTION 2:

How can I book the insurance expense under a Hong Kong Limited Company?

ANSWER 2:

Yes, the simplest way is booking the insurance expense as the company’s expense if the amount is small.

 

For further information, please contact us.

You may want to read: WHAT TO DO WHEN I RECEIVE A PROFIT TAX RETURN?

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