Time files when we are facing the dramatically changing of the world in 2020. The new year is coming, which means time to review your business strategies and do not forget the tax due date also. In order to continue to operate your business operation smoothly, make sure all of the local compliances are met.
We understand that managing tax filing deadline and accounting documents are time consuming especially to foreign entrepreneurs. Therefore, we would like to share our experiences about this issue to you before the tax season comes in April.
Salaries (Individual) Tax Return
For Individual Tax Return, you need to complete your tax return for reporting all your employment income, profits from sole business, rental income from owned properties as well as claiming deduction in one return. A director remuneration is also taxable and require to be reported annually.
Basically, the Inland Revenue Department (IRD) will deliver the tax return to you annually in the first working day in May and the normal filing date is 2 June/July. If you have not received the form from IRD, you have to inform IRD by writing a letter when you become chargeable to tax no longer than 4 months after the end of the basis period for the year of assessment.
Employer’s Tax Return
As an employer, you have obligations to keep payroll records of your staff and report remuneration paid to employees by completing and filing the employer’s return on time. Officially, the Inland Revenue Department (IRD) will issue the employer’s return to employers on the first working day of April. The employer is required to complete the details and submit the record to the government within 1 months after receiving the letter. Even if your company do not have employee in the reporting period, you are still required to file the return to the government on time. It is a kindly remind that failure to file the employer’s return on time is subjected to government late filing penalty of HK$10,000. You have to pay attention on the statutory period for notification. Penalty of HK$10,000 will be imposed charged the employer of you are failure to comply the IRD’s requirements.
Profits Tax Return
Any person who is carrying on any profession and business in Hong Kong no matter you are local or non-residents, are subject to the Hong Kong Profits Tax.
A company is required to prepare its audited financial statement and file its profit tax return to the Inland Revenue Department within one month after received the tax return. Here is the current profit tax rate for your reference:
For profits tax return, the issue date is normally set in the first working day in April. And the filling date for all cases is 2nd May. That means you need to fill the profit tax within one month normally. Recently, HK government is encouraging electronic filing. A further extension of 2 weeks after the normal due date is available for small corporation business who will file the profits tax return via online method.
KPC Business Centre has 12 years experiences with providing professional accounting & audit arrangement services. Looking for a professional accounting consultant? Please feel free to drop us an email at [email protected] / Whatsapp us +852 9168 9205 anytime.
尖沙咀商務中心擁有12年的經驗提供專業的會計和審計服務。 尋找專業的會計顧問？ 請隨時通過[email protected] / Whatsapp給我們+852 9168 9205。