With changing regulations, managing entities locally and globally is becoming challenging. A consistent and transparent approach in managing entities can help corporations pro-actively manage the life-cycle of their legal entity structure more efficiently.

As one of our core services, our team comprises experienced tax experts in handling compliance cases with pro-active attitude in discovering tax saving opportunities and risks of your business.

We can assist you on the following services:

Compliance Services

Annual Profits Tax Return Filing

Accounting Date

Filing Due Date (Without Tax Representatives) 

Due Date Extension for 2020/21 Tax Return (With Tax Representatives)

1 April 2020 - 30 November 2020
(Accounting Date Code "N")

Within 1 month from the date of issuance (i.e., Beginning of May 2021)

31 May 2021

1 December 2020 - 31 December 2020
(Accounting Date Code "D")

Within 1 month from the date of issuance (i.e., Beginning of May 2021)

16 August 2021

1 January 2021 - 31 March 2021
(Accounting Date Code "M")

Within 1 month from the date of issuance (i.e., Beginning of May 2021)

For profits cases:

15 November 2021
For loss cases:

31 January 2022

Reply to IRD’s enquiry letters

Handling of tax dispute with the Inland Revenue Department (IRD) on various areas: Related party transactions, Capital gain claim, Offshore claim, etc.

Tax-exempt charitable institutions (Section 88)

Charitable institutions are generally exempt from Hong Kong Profits Tax. Pre-approval from the IRD are required to obtain the Tax-exempt status (Section 88 Status). Draft Article of Association and 12 month activity plans are key documents for the application to the IRD.

Reference: https://www.ird.gov.hk/eng/pdf/tax_guide_for_charities.pdf

Tax Credit Claim (Avoidance of Double Taxation)

Tax credit calculation could be complex, but it is an effective tool to avoid double taxation. Keep your foreign tax payment receipt and apply for Tax Credit Claim in your Hong Kong Profits Tax filing.

Reference: https://www.ird.gov.hk/eng/pol/dta.htm

Nice Cheer case (Non-taxable claim on unrealized gain / fair value gain)

Nice Cheer case is a significant tool to delay tax payment for companies involved in active trading of stock, immovable property, etc. Under Nice Cheer case, unrealised gain is non-taxable until it is realised, while unrealised loss is deductible.

Reference: https://www.ird.gov.hk/eng/tax/bus_fva.htm

Section 70A Claim and Objection, Holdover of Provisional Profits Tax

Section 70A Claim and Objection are tools to revise the assessments. When the assessment profits of the company are less than 90% of that in last year, the company can apply for holdover of Provisional Profits Tax




Advance Ruling

Large Multi-National Corporations may prefer obtain opinion of the IRD of their upcoming complex and significant arrangements / transactions. In that case, you may apply for Advance Ruling from the IRD.

Reference: https://www.ird.gov.hk/eng/pdf/dipn31.pdf

Advisory Services

Capital gains claim planning

Long-term investment gains are taxed at 0% while short-term investment gains are subject to tax at 16.5% in Hong Kong. Through proper tax planning, the tax benefit of long-term capital gain claim can be significant  

Reference: https://www.ird.gov.hk/eng/faq/pty_tran.htm

Offshore claim review and planning

Offshore profits are not subject to Hong Kong Profits Tax. The IRD usually requests for significant amount of information and documents before allowing the offshore claim. It is important to ensure the profits-generating activities are performed outside Hong Kong and sufficient documentation are kept to defend the challenge.

Reference: https://www.ird.gov.hk/eng/pdf/dipn21.pdf

Cross-border group company recharge

Service / management / consultancy fee payments made by Hong Kong corporations to non-Hong Kong corporations / individuals are subject to spotlight. The IRD may either disallow the tax deduction on the fee payments or charge tax on the profits earned by the non-Hong Kong corporations / individuals. Proper tax planning is essential.

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