We offer a comprehensive range of tax advisory and compliance services to both local and multinational companies. Our in-depth experience and expertise in the taxation regimes of Hong Kong and Mainland China enables us to identify issues relevant to your business operations. This ensures that concessions and incentives can be effectively utilised to reduce tax liabilities and enhance your business’s profitability.

Here’s how our tax advisory services can help:

Hong Kong Tax Advisory and Tax Compliance

Advising on tax-efficient holding and operating structures for business operations
Providing personal income tax advisory and structuring tax-efficient packages
Handling the lodgement of tax exemption claims and settlement disputes with the Inland Revenue Department (IRD)
Negotiating with the IRD for tax investigation and tax field audit cases
Developing tax strategies for investment planning, group restructuring, and mergers and acquisitions
Conducting tax due diligence on merger and acquisition transactions
Conducting pre-Initial Public Offering tax provision reviews and planning

PRC Tax Advisory and Tax Compliance

Advising on PRC regulatory, accounting, tax, and business issues related to foreign investment into the PRC
Assisting clients in setting up Representative Offices, Wholly-Owned Foreign Enterprises, Joint Ventures, etc. in the PRC
Planning and implementing optimal PRC holding and operating structures to enhance business growth and manage operational risks
Conducting health checks on existing operations from a tax and regulatory compliance perspective
Providing tax return filing services for PRC Corporate Income Tax, Turnover Tax and other PRC business-related formalities
Offering personal Income tax advisory and filing services
Structuring tax-efficient remuneration packages for expatriate employees working in the PRC

International Tax Advisory and Planning

Advising on tax-efficient corporate holding and operating structures, including human resource arrangements
Conducting transfer pricing reviews and providing advice
Advising on tax-efficient methods for profit/fund repatriation
Conducting tax due diligence and providing advice on merger and acquisition transactions

Global Employer Services

Advising on global employer services, including structuring employee benefits and compensation packages
Assisting in compliance with international employment regulations and standards
offering guidance on cross-border employment issues and expatriate taxation
Providing support in managing global mobility challenges and compliance

Transfer Pricing

Assisting in the development and implementation of effective transfer pricing policies
Ensuring compliance with international transfer pricing regulations and guidelines
Offering guidance on intercompany transactions to optimise tax efficiency
Providing support in addressing transfer pricing challenges and disputes

Frequently Asked Questions (FAQs):

What is tax advisory?

Tax advisory involves professional services designed to help individuals and businesses navigate complex tax laws and regulations. Key offerings include:

Tax Planning: Developing strategies to minimize tax liabilities while ensuring compliance with laws.
Compliance: Assisting with tax return preparation and filing to meet local and international regulations.
Audit Support: Providing guidance during tax audits and preparing necessary documentation.
International Taxation: Advising on cross-border tax issues, transfer pricing, and tax treaties.
Tax Risk Management: Identifying and mitigating potential tax risks.
Transaction Advisory: Evaluating tax implications of mergers, acquisitions, and other business transactions.

Overall, tax advisory services help clients make informed financial decisions and strategically manage their tax obligations.

What are the personal and business tax rates in Hong Kong?

Hong Kong boasts a simple tax structure with low rates:

Personal Tax Rates:
- Progressive rates range from 2% to 17% based on income.
- A flat rate of 15% can be chosen if it results in lower tax after deductions.
Business Tax Rates:
- Corporate Profits Tax: 16.5%, with a lower rate of 8.25% for the first HKD 2 million in profits.
- Unincorporated businesses are taxed at the same rates.

These structures create a business-friendly environment while minimizing tax burdens for individuals.

What is the taxation system in Hong Kong?

Hong Kong's taxation system is characterized by simplicity, low rates, and a territorial focus:

Territorial Tax System: Only income sourced from Hong Kong is taxed.
Types of Taxes: Includes profits tax, salaries tax (progressive rates or flat rate), and property tax (flat rate of 15% on net rental income).
Deductions and Allowances: Taxpayers can claim various deductions and personal allowances.
No Capital Gains Tax: Capital gains are not taxed, promoting investment.
No Inheritance Tax: Simplifies estate planning.
Filing Requirements: Annual tax returns are mandatory.
Tax Treaties: Numerous double taxation agreements (DTAs) exist to facilitate trade and investment.
Simple Tax Structure: Fewer tax types and minimal bureaucracy enhance efficiency.

How can tax advisory services help my business?

Tax advisory services can help businesses by providing tailored strategies to minimize tax liabilities, ensuring compliance with regulations, and offering support during audits. Additionally, they can identify tax-saving opportunities and navigate complex international tax issues, ultimately improving financial outcomes and operational efficiency.

What should businesses look for when choosing a tax advisory provider in Hong Kong?

When selecting a tax advisory provider, businesses should consider the provider's expertise in local tax laws, reputation, range of services, and client testimonials. It's also essential to ensure that the firm understands the unique needs of your business and can provide personalized solutions.

Are there any tax incentives available for businesses in Hong Kong?

Yes, Hong Kong offers various tax incentives, such as reduced rates for certain sectors (e.g., qualifying expenses for research and development) and allowances for investments in specific industries. Consulting with a tax advisor can help identify applicable incentives to optimize tax liabilities.

What documents do I need to provide for tax advisory services?

Clients typically need to provide financial statements, tax returns from previous years, records of income and expenses, and any relevant contracts or agreements.

How can I ensure compliance with tax laws in Hong Kong?

Working with a tax advisor can help ensure compliance by providing updates on tax law changes, assisting with accurate tax filings, and advising on best practices for record-keeping.

What happens if I miss a tax deadline?

Missing a tax deadline can result in penalties and interest on unpaid taxes. It's essential to consult with a tax advisor for guidance on mitigating the impact and understanding options for rectification.

Are there any specific tax considerations for expatriates in Hong Kong?

Yes, expatriates may face unique tax challenges, including understanding residency status, applicable tax treaties, and obligations regarding income earned abroad. A tax advisor can provide tailored advice.

How can tax advisory services help with estate planning?

Tax advisory services can assist with estate planning by providing strategies to minimize tax liabilities on inherited assets, navigating inheritance tax implications, and ensuring compliance with legal requirements.

Tax Advisory Services