Tax & Accounting
Kreston CAC CPA Limited
Whether you are an expat planning to relocate or a business planning to expand your business in Hong Kong, Kreston CAC provides highly competitive services that will assist you to manage your financial and accounting arrangements efficiently and effectively.
With their 30 years of experience in the local market, a dedicated team of professional accountants and strong global network, Kreston CAC has been providing invaluable services to many expats moving in or out of Hong Kong.
Kreston CAC assists expats in:
- Accounting and payroll
- Audit and assurance
- Corporate and personal taxation
- Management consultancy
Tax & Accounting for Expats in Hong Kong
Hong Kong’s tax system is one of the most favourable for both expats and businesses. With attractive tax rates, a strategic location across desirable markets and world-class infrastructure there is no wonder why the dynamic city of Hong Kong is an ultimate hub for expats.
Key Tax & Accounting tips you should know as an expat in Hong Kong
- You are required to file your taxes at the end of each tax year. The HK tax year runs from 1 April to the following 31 March (year of assessment).
- The income tax in Hong Kong is based on the incomes earned in Hong Kong.
- The Inland Revenue Department normally issues your individual tax return around early May, and you are required to file your tax return within one month after that.
- You are eligible to apply for a discretionary deadline extension for filing your taxes if you have good reasons.
- Individual income tax payable is calculated at a progressive rate from 2% to 17% after deduction of various allowances or at a standard rate on your net income before allowances, whichever is the lower.
- Hong Kong has no capital gains tax but does have an additional stamp duty (on top of the base stamp duty rate) payable by non-HK permanent resident purchasing property in Hong Kong.
- As an expat moving to Hong Kong for employment purposes, you are entitled to apply for a work visa with the HK Immigration Department.
Tax & Accounting for expats establishing a business in Hong Kong
- Your business in Hong Kong can decide on the most appropriate accounting year-end and file financial statements and corporate tax returns according to this tax year, which may not coincide with the Hong Kong tax year.
- Hong Kong does not have goods and services tax (“GST”), value-added tax (“VAT”), capital gain tax, bank deposit interest tax and dividend income tax.
- The corporate profit tax rate is 16.5% on assessable profits; however, you are entitled to nominate one of your controlled companies or group companies for two-tiered profits tax rates (i.e. 8.25% on first HK$2M assessable profits and 16.5% above the threshold of HK$2M).
- Only profits and income arising in or derived from your company registered in Hong Kong are subject to Hong Kong profit tax.
- Private limited liability companies are a very common business structure in Hong Kong and it doesn’t require any local director or shareholder for registration.
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