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Hong Kong Salaries Tax - Approved Charitable Donations
In general, an approved charitable donation made by a person can only be claimed by that person. The only exception relates to donations made by a married couple who are not living apart from each other. A spouse may claim a deduction for approved charitable donation made by the other spouse. In no case can a deduction for the same donation be claimed by both of them. Further, you can claim the unused portion of approved charitable donations made by your spouse.
Hong Kong Profits Tax - Partnership
The precedent partner is responsible to file a Hong Kong Profits Tax Return for Persons other than Corporations (BIR52). According to Section 2 of the Inland Revenue Ordinance, “precedent partner” means the partner who, of the active partners resident in Hong Kong is first named on the agreement of partnership; or if there is no agreement
Hong Kong Profits Tax – Definition of a Body of Persons
According to Section 14 of the Hong Kong Inland Revenue Ordinance, profits tax shall be charged for every person carrying on a trade, profession or business in Hong Kong in respect of his assessable profits derived from Hong Kong. Section 2 of the Hong Kong Inland Revenue Ordinance defines “person” to be included a corporation, partnership, trustee, whether incorporated or unincorporated, or body of persons.
Hong Kong Profits Tax - Corporation
Section 14 of the Inland Revenue Ordinance levies profits tax on every person carrying on a trade, profession or business in Hong Kong in respect of his assessable profits derived from Hong Kong. Section 2 of the Inland Revenue Ordinance defines “person” to include a corporation. Under this section, it further explains that a corporation means any company which is either incorporated
Hong Kong Salaries Tax – Elderly Residential Care Expenses
A Hong Kong taxpayer may claim the elderly home expenses that has been paid to a residential care home for his or his spouse’s parent or grandparent subject to the following conditions: The parent or grandparent is at least 60 years old, unless he/she is entitled to claim an allowance under the Government’s Disability Allowance Scheme.
Hong Kong Salaries Tax – Employee versus Office Holder
An employee has a master and servant relationship with his employer. The work of an employee is within the control of his employer as to what to do, how to do and when to do.An office holder holds an office created by law or covenants. The office holder’s duties and responsibilities are statutory and irrespective of whoever holding the office. A common example is the director of a corporation.
Hong Kong Salaries Tax – Holiday Journey Benefits
Holiday journey benefits granted by employers are assessable under Section 9(2A)(c) of Hong Kong Inland Revenue Ordinance.The assessable amount is the actual cost incurred by the employer in providing the benefit to the employee and / or his family members.The Ordinance provides that the charge of tax is irrespective of the following factors: (1) Whether or not the benefit is convertible into cash;
Hong Kong Profits Tax – Requirements for Keeping Business Records
Section 51C of the Inland Revenue Ordinance requires every person carrying on a trade, profession or business in Hong Kong to keep sufficient business records, either in English or Chinese, to enable the assessable profits of your business to be readily ascertained. You must keep such records for at least 7 years. Failure to do so may render you liable to a maximum penalty of HK$100,000.
Hong Kong Profits Tax - Non-Hong Kong residents
Section 14 of the Hong Kong Inland Revenue Ordinance (“IRO”) states that profits tax shall be charged for each year of assessment on every person carrying on a trade, profession or business in Hong Kong in respect of his assessable profits arising in or derived from Hong Kong from such trade, profession or business. This applies to both residents and non-residents of Hong Kong.
Hong 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.Depreciation not calculated in accordance with the Inland Revenue Ordinance;Expenses or losses of a capital nature;Remuneration, interest on capital or loans payable to business owners (for unincorporated business)