Our mission is to help clients fulfil their tax filing obligations in a timely manner, report their assessable income appropriately, and minimise their tax liabilities. We are also well versed in handling IRD enquiry letters and dealing with the IRD on field audit cases.
Hong Kong adopts a territorial concept on taxation of profits, i.e., only those profits which are sourced in Hong Kong are subject to tax. In addition, the capital gain is exempt from Hong Kong Profits Tax. Taxpayers may lodge offshore or capital non-taxable claims on their derived income, which will not be subject to tax in Hong Kong. Deduction claims will also apply to capital expenditure under specific tax rules.
Persons and corporations receiving passive income, such as interest income, dividend income, and royalty income from overseas companies may be subject to overseas withholding tax, where they can apply to use a lower withholding tax rate (or even zero withholding tax rate) if Hong Kong has a double tax treaty with the overseas jurisdiction in question, provided that these persons or corporations obtain a Certificate of Resident Status (COR) from the IRD.
We can help our clients identify any tax planning opportunity to reduce their tax liabilities, e.g., assessing the feasibility of an offshore claim and advising clients on restructuring their business models to strengthen the validity of claim, making use of specific tax rules to lodge deduction claims on their capital expenditure and providing ways to legally minimise tax liabilities according to the tax law.