When applying for bank loans, whether for buying property or business financing, you’ll need to submit your tax return. If you don’t receive that crucial green envelope, you might find your plans blocked and unable to secure funding!
Did you know that selling real estate can lead to hefty tax implications? According to the Inland Revenue Ordinance, persons, including corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Hong Kong are chargeable to tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Hong Kong from such trade, profession or business.
From July 5, 2024, Hong Kong introduces the “Patent Box” tax incentive aimed at encouraging businesses to leverage their patents and boost research and development efforts. Starting from the 2023/24 tax year, profits derived from qualifying intellectual properties—like patents, software copyrights, and plant variety rights—could enjoy a significantly reduced tax rate of just 5%.
Claiming “entertainment expenses” often leads to disputes, as these costs must directly contribute to business operation. Business owners frequently receive inquiries from Inland Revenue Department (IRD), and in their attempts to provide evidence, they can accidentally complicate matters by overlooking key details.
