No Profit from Business, No Need to Report Income? Think Again！
When it comes to tax filing, many business owners have the same question:
If my business did not make any profit after deducting expenses, can I simply put “0” on the tax return?
Overseas Clients ≠ Offshore Income?｜Cross-border Tax Arrangements Require Professional Support
After the pandemic, more companies have started handling overseas business online.
Tax Assessments Can Be Wrong? Check These 12 Items Carefully Before You Pay!
Every year, when people receive their tax assessment, many of them immediately think about paying it as soon as possible so they will not delay the matter.
Understatement of income to Inland Revenue Department — Could It Cost You Dearly? | A Penalty Case Explained
When it comes to filing taxes, many people think, “I can handle it myself.”
But in reality, understatement of income to Inland Revenue Department in tax filling is a very common issue in Hong Kong.
Deferred Annuity Tax Deduction Guide | Tax deduction up to $60,000? Check if you meet the requirements first!
In recent years, more people in Hong Kong have started considering deferred annuities as tax deductions. During the tax season, a common question is: “How much tax deduction can I get from an annuity?”
Voluntary Health Insurance Tax Deduction: 4 Common Mistakes That Could Cost You a Claim
Many taxpayers purchase Voluntary Health Insurance (VHI) with the expectation that they can easily claim a tax deduction. However, in practice, a large number of people later discover that their VHI premiums cannot be fully claimed, or in some cases, cannot be claimed at all.
🌟 Don’t Let a Missing Green Envelope Affect Your Loan Plans! 🏡💰 Get your Tax return in 3 Simple Steps!
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!
Do You Have to Pay Taxes When Buying or Selling Property? (Part 2)
In Part 1, we analyzed Case No. D21/22 to understand how the tax office assesses your “intent” when purchasing property, which determines if you owe taxes on the sale. A key factor is the property’s usage; many claim “personal residence” to contest tax assessments, yet most appeals fail. This article reveals how the tax office gathers evidence to accurately gauge your actual residency.
Do You Pay Taxes When Buying and Selling Property for Hong Kong Property?
In Hong Kong, whether you need to pay taxes on property transactions depends on whether those transactions constitute “business” activities.
🚨 Attention BNO “Astronauts”! Don’t Fall into the Tax Trap! 🚨
Starting April 6, 2025, the UK will implement a new tax system that affects overseas residents. For the first four years, new arrivals in the UK won’t have to pay tax on overseas income. However, from the fifth year onwards, they will be taxed like regular UK residents on their global income. This change is particularly important for BNO visa holders and families participating in the “Astronaut Project”
The Risks of Using Bank Statements for Tax Reporting: A Cautionary Tale for Businesses
In today’s challenging economic landscape, every penny counts. As business owners, it’s essential to manage finances meticulously, particularly when it comes to tax reporting.
🏠 Thinking of Selling Your Property? Don’t Let Unexpected Taxes Catch You Off Guard! 💰
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.
Did you know that the usual 16.5% tax rate isn’t the lowest you could be paying?
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%.
Tax Traps: Is “Self-Education” Always Tax-Deductible? 📚💰
Thinking of claiming deductions for your personal education expenses? While it can save you money, it’s crucial to confirm that you meet all the necessary conditions before filing. Incorrectly reporting to the Inland Revenue Department (IRD) could lead to serious repercussions!
Are You Claiming the Dependent Parent and Dependent Grandparent Allowance Correctly? Don’t Fall into These Traps!
Did you know that taxpayers can claim tax allowance for supporting parents, grandparents, or great-grandparents? While it sounds straightforward, there are specific conditions to meet.
Hong Kong Tax Tips: Avoid Fines and How to Make Things Right
Mistakes happen—it’s part of being human. Filling out tax forms incorrectly or failing to report income is more common than you think. Many people mistakenly believe that simply admitting a mistake and paying back taxes is enough to resolve the issue.
Tax Traps – Don’t Misclaim Business Entertainment Expenses! Small Oversights Can Lead to Big Problems!
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.
Why You Should Open Tax Letter Immediately!
Have you ever received a letter from the Inland Revenue Department (IRD) and felt your heart race? Many people put off opening it day after day, even losing it altogether. But the IRD isn’t a monster waiting to pounce; their letters usually concern tax submissions or assessments. Even if you have questions, addressing them promptly can lead to a resolution.
End of Tax-Free Status for Immigrants in the UK: Property Owners, Take Note!
The UK recently announced its 2024 fiscal budget, revealing that starting from April 2025, the tax exemption for new immigrants will be abolished.
Regardless of the size of a business, it is essential to have someone “monitoring the numbers.” Apart from accountants handling the company’s day-to-day transactions, when is it necessary to engage external audit or internal audit? What are the differences in their purposes and functions?
The latest figures released by the Inland Revenue Department show that the number of cases where people were fined for late tax payments increased by 22% compared to the previous year.
How does the “wealth tax” affect you? If you are one of them, how should you deal with it?
The Hong Kong terms “emperor of working” refers to highly paid employees whose income surpasses that of many employers. One of the tax measures in the latest budget proposal is the implementation of a two-tier tax rate system for salaries and personal income tax starting from the 2024/25 tax year.
【Tax assessment for Couples】Qualified Annuity Premiums Tax Deductions Have “Blind Spots”
Many Hong Kong people are enthusiastic about buying and selling stocks, but it’s important for beginners to understand the rules of the game. Do you need to pay taxes on investment profits? Let’s address two common questions separately.
Can wedding banquet expenses arranged in a Hotel be tax deductible too?
As the tax season approaches, everyone is concerned about how to save on taxes. As a businessperson, you want to earn as much as possible while also saving as much as possible.
【Tax Regulations】Financial Statements Required for Non-operational Companies
According to the recent regulations announced by the Tax Department, starting from April 1, 2023, Hong Kong registered limited companies are required to submit audited financial statements and supporting documents when filing their profits tax returns.
【Tax Exemption Tips】How to have tax saving when buying a property!
Buying a property involves significant expenses. Instead of hoping for interest rate cuts day and night, it is more practical to make good use of the “deduction for home loan interest”.
With Receipt but still Unable to Deduct Expenses for Tax Purposes?
Being savvy in business means not only knowing how to earn but also how to save. Understanding tax deductions is an important topic.
【Tax Deduction for Work-Related Education】Considerations before enrolling in a course!
The sea of knowledge is boundless, and pursuing further education while working can help advance your career. Seize the opportunity for self-improvement. Starting from the 2017/18 tax year, the maximum deduction for personal education expenses has increased to $100,000.
Being a homeowner can be challenging, as you not only have to save up for the down payment but also manage mortgage payments and various other expenses.
[2023 Minimum Wage Increase] What should employers pay attention to?
Do you need to pay taxes on stock trading profits?
Hong Kong is known for being a densely populated city with high property prices, and the cost of living is often heavy for its citizens. Many workers take advantage of their free time to invest in the stock market, and some even believe that stock trading can be more profitable than working. It is understandable that people want to earn extra income to support themselves. So, the common question is “do you need to pay taxes on stock trading profits?”.
【2023 Fiscal Budget】What You Need to Know About Tax Deduction for Domestic Rent
Since the announcement of the 2023 fiscal budget, besides waiting for the distribution of consumption vouchers, don’t forget about other “sweeteners.” For example, individuals must pay attention to the tax deduction of personal residential rent, and company directors must be especially aware!
Are there any risk for Cash payroll? Boss could get into trouble at any time!
After the pandemic, the demand for manpower in various industries has increased. The catering industry, which has always had difficulty in hiring staff, is particularly affected. Some restaurant owners said that they would hire almost anyone who is willing to work because they need more staffs. In the catering industry, it is a common practice for labours to ask payroll paid in cash. Bosses who want to have enough staff will generally cooperate with the arrangement. Although cash payroll is convenient, there is also a chance of entering the gray area of tax evasion.
Tax filing alert – a key factor that greatly affects tax amount!
After deducting all company expenses, the Inland Revenue Department will collect “profits tax” from the company’s net profit. In order to maximize the deductible expense, it is essential to keep supportings properly. The most important thing is to know the following tips!
Personal Tax Filing Guide – Maximizing Family Tax Exemptions
Filing taxes every year is a citizen’s responsibility, but not everyone is required to pay taxes. Employees are entitled to a basic tax exemption each year. There are also other tax deductions, including medical insurance, pensions, voluntary mandatory MPF contributions, and “family tax exemptions.” What qualifications are required to apply for a tax exemption for supporting parents?
Dissecting the Misconceptions of Corporate Tax Reporting – Is Reporting “Losses” Really Saving Money and Time?
There is a misconception passed down by “predecessors” that if a company is losing money, it can report losses to the tax bureau and avoid tax, thus saving money and time. In fact, even if a company has no profit or even runs at a loss, it can still claim tax deductions.
Will the Inland Revenue Department making mistakes?
Some customers reported that they had encountered suspected “miscounting” by the tax bureau in the past, but they could not appeal because they missed the objection deadline. The original tax payment is only $1,000 however as no objection is properly filled, the final tax payment is now risen to more than $10,000. “No one is perfect, we all make mistake.” It is not impossible for the tax bureau to “wrongly counting the tax payment”. If you have any doubts, don’t delay, deal with it before it is too late!
Charities – Tax Deductions and Regulations
Many conscientious local companies will give back to the society through donations and support for charitable activities when the company has made a profit. Doing good deeds and helping those in need can enhance the corporate image. In fact, charitable donations can be applied for tax deduction. Kind-hearted bosses who have the habit of donating may wish to learn about the application requirements!
Fulfilling tax filing responsibilities you should know
Any business operating in Hong Kong needs to declare profits tax. Regardless of the company has earned profit or not, tax declaration is inevitable. Thinking that there is no need to file tax returns when the business is losing money, the company may incurred even more loss.
Should a boss pay for himself?
Many people think that being a boss is all about instructing others to do things every day, but the truth is boss has to manage all the things by himself/herself. And does the “self-employed” boss need to pay? Isn’t it just move the money from left hand to right hand? Wait, bosses, pay attention! You as a director of the company, every time you pay out is not only “meaning”, but has practical significance. Make good use of personal allowances and save money when you know how to earn!