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Limited Company

Profits Tax

Details

Limited Company Profits Tax

Persons, including corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Hong Kong are chargeable to tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Hong Kong from such trade, profession or business. There is therefore no distinction made between residents and non-residents. A resident may therefore derive profits from abroad without suffering tax; conversely, a non-resident may suffer tax on profits arising in Hong Kong.

Profits Tax Rate

Sole proprietorship or partnership profit tax rate is 7.5%

Limited company profit tax rate is 8.25%

(First $2 million of profits)

 

File Profits Tax Return 

Newly Registered Business

Generally, a newly registered business will receive its first profits tax return some 18 months after the date of commencement of business or the date of incorporation.

 

Continuing Business - Annual Bulk Issue of Returns

The annual exercise to issue profits tax returns in bulk takes place on the first working day of April each year.

Normal Filing Time

Generally, profits tax return and any required supplementary forms should be filed within 1 month from the date of issue. The compliance date of submission is specified on page 1 of the profits tax return.

Extension Scheme for Lodgement of 2018/19 Tax Returns

If Bida & Co. act as your company’s tax representative has duly applied for an extension to file your 2018/19 profits tax return under the Block Extension Scheme, the due date is normally extended as follows:

Consequences of not filing your tax return on time

If you do not file your tax return on time, you may be required to pay a penalty, or even prosecuted. A further possible consequence is that you may be required to pay more tax.

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