2023-09-08Hong Kong Profits Tax – Computation of Profits Tax Liability
This below pro-forma may assist you to prepare the profits tax computation of your company/business.
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HK$ |
HK$ |
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Net Profit/(Loss) per Accounts |
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XXXXX |
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Add: Non-deductible expenses charged in the financial statements |
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Depreciation not calculated in accordance with the Inland Revenue Ordinance |
XXXXX |
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Expenses or losses of a capital nature |
XXXXX |
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Remuneration, interest on capital or loans payable to business owners (for unincorporated business) |
XXXXX |
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Domestic or private expenses |
XXXXX |
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Excess of the amount allowable to contribute to retirement scheme/contributions to retirement scheme in respect of the spouse (for unincorporated business) |
XXXXX |
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Other expenses/losses not allowable for tax purposes |
XXXXX |
XXXXX |
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Less: Allowable expenses or non-assessable income |
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Gains on disposal of capital/fixed assets |
XXXXX |
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Dividend income |
XXXXX |
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Net interest income exempted from payment of Profits tax |
XXXXX |
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Profits not arising in or derived from Hong Kong |
XXXXX |
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Expenditure on building refurbishment (equal instalments over 5 years) |
XXXXX |
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Expenditure on computer hardware and software, and prescribed machinery/plant for manufacturing purposes |
XXXXX |
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Expenditure on environmental protection machinery (full deduction allowed starting from YA 2008/09) |
XXXXX |
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Expenditure on environmental protection installation (full deduction allowed starting from YA 2018/19) |
XXXXX |
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Expenditure on environment-friendly vehicle (full deduction allowed starting from YA 2010/11) |
XXXXX |
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Industrial Building Allowance |
XXXXX |
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Commercial Building Allowance |
XXXXX |
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Depreciation allowance on plant and machinery |
XXXXX |
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Other non-assessable profits |
XXXXX |
(XXXXX) |
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Assessable Profits / (Adjusted Losses) |
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XXXXX |
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Less: Tax loss carried forward (if any) |
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(XXXXX) |
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Net Assessable Profits |
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XXXXX |
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Note:
Applicable ‘adjusted losses’ can be carried forward and be set-off to
subsequent years’ assessable profits.
Source:Hong Kong Inland Revenue Department’s website