Tax Service

Tax is levied on the territorial source principle in Hong Kong, the tax payer does not need to pay tax for the profit which arise or are derived aboard from Hong Kong. In addition, with a simple, low-rate tax system, Hong Kong builds up an ideal environment for businesses to operate in.

With a rich experience in accounting and taxation services, Wingate provides comprehensive tax services, from handling tax returns to tax planning and investigation. Our objective is to make our clients obtain a premier tax position and enjoy the greatest tax benefit under the current tax framework.

Detail of services:

1. Preparing tax computation
2. Handling tax returns
• - Profits tax return (BIR51, BIR52 & BIR54)
• - Employer’s return (BIR56A, BIR56B & BIR56M)
• - Individual tax return (BIR60)
• - Property tax return (BIR57 & BIR58)
3. Handling objections to tax assessments
4. Advisory for tax planning (Orally or in a written report)
5. Assistance in tax investigations
6. Handling off-shore claims query letters

Frequently asked questions:

When will my new limited company receive the first profits tax return?

The tax authority IRD normally issues first profits tax return to new corporations after 18 months from incorporation.

When is the deadline of first profits tax return?

Deadline is 1 month after issue date of the tax return. Deadline for a corporate with a tax representative is normally extended to 3 months.

When will my limited company receive subsequent profits tax return?

IRD normally issues subsequent profits tax return in early April.

When is the deadline of subsequent profits tax return?

Corporates with tax representative are divided into 3 categories according to their financial year end date.

• 1 to 31 December (D code): Mid-August of the following year
• 1 January to 31 March (M code): Mid-November of same year (Extension to late January of the following year can be made before 31 October if the companies incur statutory loss)
• 1 April to 30 November (N code): Early May of the following year

When will my limited company receive subsequent profits tax return if the company is making a loss?

After receiving a tax return indicating loss making, IRD will normally issue the next tax return 3 years later.

What are off-shore profits? Does my company need to pay tax for off-shore profits?

Off-shore profits are profits not derived in Hong Kong. They are exempted from Hong Kong tax. However, supporting documents have to be kept properly in order to satisfy IRD.

Will the sole proprietorship receive a profits tax return?

No, information of sole proprietorship should be filled in the Individual Tax Return of the sole proprietor.

When will my company receive employer’s tax return? When is the deadline?

IRD normally issues employer’s tax return in early April and the deadline is 1 month after issue date of the tax return. Companies with many employees may apply for an extension of 1 more month.

When will I receive my individual tax return? When is the deadline?

IRD normally issues Individual Tax Returns in early May. Deadlines for different circumstances are as follow:

• No business and without a tax representative: 1 month after the issue date of the tax return
• No business but with tax representative: 2 months after the issue date of the tax return
• Have business but without tax representative: 3 months after the issue date of the tax return
• Have business and tax representative: 6 months after the issue date of the tax return

When will I receive property tax return? When is the deadline?

IRD normally issues property tax returns in early April and the deadline is 1 month after the issue date of the tax return.

What is the consequence for of late filing of tax returns?

IRD normally gives a buffer time of two weeks. After that, penalties will be given.

What should I do if I have received an estimated assessment?

An estimated assessment can be objected within 1 month from the issue date of the assessment. However, no objection is acceptable if the relevant tax return is not filed.

When is the deadline for objecting a tax assessment?

An assessment can be objected within 1 month from the issue date of the assessment.