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Taxation

Achieving tax efficiency

Our advisors provide individualized services to help alleviate your financial uncertainty and stress. With many years of experience, our experts have the knowledge and expertise to advice and alternatives that fit your situations.

Three types of tax are relevant to entrepreneurs:

  1. Salaries tax

  2. Profits tax

  3. Properties tax 

There is no VAT, sales tax and capital gain tax in Hong Kong.

 
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Salaries Tax

Salaries / commissions / bonus, etc earn from employment

E&M Accounting and Taxation Consultant Co. has been specializing in personalized taxation throughout Hong Kong since 1997. In addition to our certified accountants, we have the skills, knowledge and charisma to handle all of your accounting and taxation needs. We are ready to tackle any financial challenges that you may have as your trusted tax planner and financial advisor.

We are here to ensure you can claim all  the allowances you are entitled to legitimately lower the tax liabilities.

Hong Kong salaries tax is calculated at lower of the following methods:

a. progressive tax rates or

b. standard tax rate of 15%.

 

Profits tax

E&M Accounting and Taxation Consultant Co. has been serving corporations and SMEs in planning and handling tax filing in Hong Kong since 1997. We understand requirements of international clients and we have the skills, knowledge and charisma to handle all of your accounting and taxation needs.

Hong Kong offer two tier of taxation since 2018/19. 

  • First HK$2 million profit would be taxed at 8.25%. 

  • Profits above HK$2 million would be taxed on the standard 16.5%.

 

Tax Administration

Financial Year End

Hong Kong government's fiscal year is from 1 April to 31 March. 
But Hong Kong companies can choose their own financial year ends.
Most companies would either choose calendar year (Jan to Dec) or follow the government fiscal year cycle.

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Timing of tax reporting

The first tax reporting is due 18 months after the set up of the company.  If a company is set up on 1 Jan 2018, the first tax return will be issued on 1 Jul 2019, which has to be filed within three months, i.e. before end of 30 Sep 2019.

Thereafter the tax reporting deadlines would be as follows:

  • companies with year ends at the month end of Apr to Dec, tax deadline would be on 15 Aug of the following year. 

  • companies with year ends at the month end of Jan to Mar, tax deadline would be on 15 Nov of the same year.

Payment of tax 

Tax payments would be due in two installments.

  • 75% due in Dec

  • 25% due in the following Apr

Each company has its own tax due dates.

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