English 英文｜Traditional Chinese 繁體中文

 

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):

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

Contact us

Complete this form and an RSM representative will be in touch.