- info@kaizencpa.com
- Our Office: USA - Hong Kong - Shenzhen - Shanghai - Beijing - Taiwan - Singapore - Japan - UK
+852 2341 1444(Hong Kong)
Search for anything.
Knowledge
- Home
- Knowledge
- Hong Kong Taxation
Hong Kong Salaries Tax – Pension
Under Section 8(1) of the Hong Kong Inland Revenue Ordinance (“HK IRO”), pension arising in Hong Kong is chargeable to salaries tax.No definition of “pension” is made in HK IRO. Generally, pension refers to an annuity or other recurring periodic payments for consideration of past services. Section 9(3) of HK IRO extends the charge to cover a pension which is voluntary or is capable of being discontinued.
Hong Kong Salaries Tax – Place of Residence Provided to an Employee
If an Assessor of the Inland Revenue Department accepts that your employer has provided you with a place of residence, Rental Value (“RV”) should be computed and assessed to salaries tax. If it is not accepted, then the benefit provided by your employer must be assessed as a perquisite at its cash value, which means taxable in full.
Hong Kong Profits Tax – Current Major Profits Tax Rates
Basically, all entities with profits chargeable to Profits Tax in Hong Kong would qualify for the two-tiered profits tax rates, except those entities with a connected entity which is nominated to be chargeable at the two-tiered rates. Further, corporations which has made an election under section 14B(2)(a) (qualifying professional reinsurance business and authorized captive insurance business)
Types of Hong Kong Property Tax Return
If you are the individual sole property owner, you should report your rental income in your Tax Return – Individuals. If the property is owned by corporations and/or bodies of persons, rental income must be reported through Property Tax Return – Corporations and Bodies of Persons.
Illustration of Computation of Property Tax and Application for Holdover of Provisional Property Tax
Illustration of Computation of Property Tax and Application for Holdover of Provisional Property Tax. The application for holding over of Provisional Tax must be in writing and setting out the grounds for the hold-over. The application should be submitted to the Inland Revenue Department not later than 28 days before the due date of the provisional tax or 14 days after the date of issue of the notice for payment of the provisional tax, whichever is later.
Hong Kong Salaries Tax – Retirement Benefit
A recognized retirement scheme means: a Mandatory Provident Fund scheme (“MPF scheme”); a recognized occupational retirement scheme (“ROR scheme”). An individual taxpayer can claim deduction for his mandatory contribution to a recognized retirement scheme. The maximum deduction from 2015/16 onwards is HK$18,000 per year.
Hong Kong Salaries Tax – Self-Education Expenses
nly the actual amount paid in the year of assessment should be claim. No spreading of the expenses throughout the period of the course is allowed. The maximum deductible amount is HK$80,000 for the years of assessment 2013/14 to 2016/17. From the year of assessment 2017/18 onwards, the deduction ceiling for self-education expenses has been increased to HK$100,000.
Hong Kong Profits Tax - Expenditures with Special Deduction Rules/Tax Relief
Generally, all outgoings and expenses, to the extent to which they have been incurred by the taxpayer in the production of chargeable profits and that are not capital in nature are allowed as deduction. However, there are certain expenditures that has relevant special deduction rules/tax relief.
Hong Kong Profits Tax – Filing Requirements and Payment of Tax
In general, Profits Tax Return (“PTR”) must be completed and submitted to the Hong Kong Inland Revenue Department (“IRD”) within one month from the date of issuance of the tax return, along with the following documents (“collectively referred to as “Supporting Documents”):
Hong Kong Tax - Advance Ruling
Advance Ruling under section 88A of the Hong Kong Inland Revenue Ordinance (“IRO”) is for those who wish to ascertain the tax position of a contemplated transaction or arrangement. A person may apply to the Commissioner of the Hong Kong Inland Revenue Department (“IRD”), subject to the payment of a fee and certain regulations, for a ruling on how any provision of the IRO applies to the arrangement specified in the application.