TAX ADVISORY SERVICES
BoardRoom’s Tax Advisory Experts Ensure That You’re Not Perplexed by Tax
Regardless of your business type or industry, tax compliance is pertinent for every company and individual in Hong Kong. At BoardRoom, our dedicated team of experts are ready to take your business by the hand and navigate complex cross-border tax matters with our range of advisory services. Our end goal is to keep you in compliance with tax regulations and deadlines while working together constructively with authorities to achieve favourable resolutions.
BoardRoom’s team of tax professionals will take care of all your tax compliance matters – so you can focus your efforts on growing your business. We will provide comprehensive tax advisory services, income tax filing services, corporate tax services, and more to help you spend more time where it counts.
01 Income Tax Compliance Services
As part of our corporate tax compliance services for Hong Kong, we’ll help you stay up to date with all the following:
- Monitoring the statutory tax filing deadlines and working closely with you to meet the filing deadlines
- Preparing and reviewing tax returns and computations and highlight any tax issues identified over the course of our preparation/ review of the information provided
- Submitting the finalised tax returns and computations to you for approval and signature before filing with the tax authority
- Providing tax advisory services for the payment due dates upon receipt of Notices of Assessment
- Application for Hong Kong tax incentives
02 Cross-Border Tax Advisory Services
- Tax due diligence review
- Tax advice on inbound and outbound investments
- Review business flow and contracts
- Tax advice on group corporate structure and business restructuring
- Tax equalisation advisory
03 Country-by-Country Filing
We take care of your enterprise’s different tax filing and compliance needs, which can be taxing especially for fast-growing, international organisations.
- Preparation and filing for Country-by-Country Reporting
- Preparation and filing for Country-by-Country Reporting Notification
Tax compliance in Hong Kong can be a time-consuming and stressful task to undertake for your own business. If you want to free up time to focus on truly growing your business, let Boardroom handle your tax compliance in Hong Kong. If you have any questions, or if you would like to get started on tax outsourcing, send us your enquiry. A member of our tax advisory team will be in touch as soon as possible.
Why Choose BoardRoom?
Because we help take your business further, faster, at all stages
BoardRoom is Asia-Pacific’s leader in Corporate and Advisory Services including Employee Stock Options Plan Services, Regional Payroll Services, Corporate Secretarial Services, Share Registry Services, Accounting and Taxation Services, Payroll Outsourcing, and Human Resource Outsourcing.
For over 50 years, we have supported companies in navigating through complex operational and regulatory policies and cultural sensibilities. We are well-positioned in Asia-Pacific with offices in Singapore, Australia, China Mainland, China Hong Kong, and Malaysia, as well as an extensive partner network throughout Asia.
BoardRoom is the partner of choice for many Fortune 500 multinational companies, public listed and privately owned enterprises.
Frequently Asked Questions (FAQs)
1. What is a company tax return?
A company tax return refers to the annual filing of a company’s profit/loss to the Inland Revenue Department (IRD) of Hong Kong. The company tax return is then used to calculate the amount of corporate tax to be paid, determined by the corporate tax rate which the company falls into based on business profitability. All companies are required to pay taxes to the government as the cost to keep your business running in Hong Kong.
2. What is the corporate tax rate in Hong Kong?
Hong Kong has earned itself a reputation for not only being a gateway into business in China but also an incredibly business-friendly city thanks to its low tax rates. Corporations are only required to pay 8.25% tax on assessable profits up to HK$ 2,000,000, or 16.5% on assessable profits over HK$ 2,000,000.
3. How do I file my company tax return in Hong Kong?
Company tax returns can be either prepared manually or with the help of software. In Hong Kong, businesses have the option of submitting their tax returns electronically or in person. After calculating how much tax your company owes, you must then submit your application to the Inland Revenue Department. For more information, as well as profits tax forms and other supplementary documents, refer to the IRD’s website. Filing your company tax returns can be a complicated and stressful process. BoardRoom can help take this pressure off your businesses’ shoulders and ensure complete compliance through efficient and professional services. Please contact us for assistance on your tax filing matters.
4. What is the role of a tax advisor?
Tax advisors are responsible for providing consultation and guidance to companies when it comes to navigating all tax compliance matters. They will help businesses come up with plans to prepare for tax, find out the minimum amount of tax payable while staying completely compliant, and help prepare for your companies financial future.
5. Is tax compliance important for a business?
Staying tax compliant is of the utmost importance to your business. Not only can it cause significant trouble, time, and effort in the future, you can incur significant financial losses. Any tax not paid in Hong Kong will be deemed to be in default. The Hong Kong government specifies that if the first installment is not paid on time, the second installment will be due immediately. Following this, the Commissioner of Inland Revenue will initiate recovery actions, in which an additional 5% surcharge is added onto the entire balance.
6. How do you ensure a business remains tax compliant?
Staying tax compliant is a matter of keeping your finances organised and having a keen understanding of the tax laws and regulations in Hong Kong. This can be both a time consuming, and stressful task, so many companies prefer to outsource the work to professionals who can ensure zero mistakes are made and that it is done in a timely manner. At BoardRoom, we help countless businesses in all industries and of all sizes stay tax compliant each financial year. Our team will monitor statutory tax filing deadlines, work closely with you to file them properly, prepare and review tax returns and highlight any potential issues before submitting them. We can also act as tax advisors and help with applications for Hong Kong tax incentives.
7. What is the difference between tax planning and tax compliance?
Tax compliance refers to the act of following tax regulations and laws in your country. Any company that does not follow tax compliance steps is at risk of breaking the law, which can be disastrous for the success of your company. Tax planning, on the other hand, refers to the act of analysing your company’s finances in order to ensure that you are tax compliant and that you pay the lowest amount of tax legally possible to maximise profits.
8. What tax credits and incentives are available for Hong Kong companies?
Hong Kong has remained an attractive city for businesses thanks to favourable taxation policies. For example, businesses who turn an annual profit of less than HK$ 2,000,000 will only be required to pay a tax of 8.25%, half the normal HK tax rate. The Inland Revenue Department has released several tax measures in its 2021-22 budget, including reducing profits tax for businesses, waiving business registration fees, and increasing the rate of ad valorem stamp duty. In addition, the IRD has issued policies regarding Double Taxation Relief, which is particularly helpful if your business is related to airline or shipping incomes.
9. What are tax filing services in Hong Kong?
A tax filing service is where you employ the help of a third-party tax filing provider to help you stay up to date and compliant with all your tax matters. Tax filing services from a company like BoardRoom will help you meet all the relevant deadlines on time, understand and calculate how much tax you need to pay and prepare all the necessary documentation for you to approve and sign. Some businesses will even go the extra mile and help you apply for Hong Kong tax incentives that may benefit your company.
10. What are tax advisory services in Hong Kong?
Tax advisory services will help your business by providing consultatory help and guidance when it comes to navigating complex tax matters. Tax advisory services will help you prepare for tax, stay compliant with all the tax regulations in Hong Kong, advise on corporate structure, review business flow and contracts, advising on inbound and outbound investments, and much more.
11. How can BoardRoom help in taxation services?
BoardRoom can help with a range of tax services, including income tax compliance, cross-border tax advisory services, country-by-country filing, and more. Our team of specialists has years of experience working with companies in all industries and of all sizes. With a personalised solution for each business, we can help you stay tax compliant, ensure you pay the lowest amount of tax, and help drive long-term success. Contact our taxation specialists today to find out more.