Tax
How profits tax is calculated, what is deductible, how an offshore claim is substantiated, deadlines and extensions. The detail decides what you pay.
18 articles
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Director Salary in Hong Kong: How Much Is Tax-Efficient?
Director salary from your own limited company is deductible for the company and taxable for you. A worked example shows where the efficient level sits.
About 8 min read
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2025/26 Tax Reduction: 100% Waiver Capped at HK$3,000
Tax reduction for 2025/26: 100% off salaries tax, personal assessment and profits tax, capped at HK$3,000 — double last year. Who benefits and when it lands.
About 5 min read
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BIR60 Tax Return Guide: How to Complete Each Section
BIR60 is Hong Kong's individual tax return, issued in early May and due within a month. How to fill in each section and avoid the most common errors.
About 8 min read
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Hong Kong Salaries Tax: Rates, Allowances and Filing
Salaries tax in Hong Kong runs at progressive rates (2%–17%) or the standard rate, whichever is lower — 2025/26 allowances, deductions and worked examples.
About 5 min read
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Objecting to a Hong Kong Tax Assessment with Form IR831
How to object to a Hong Kong tax assessment: the one-month IR831 deadline, grounds, and holdover of tax.
About 6 min read
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IRD Enquiry Letters: How to Reply and What to Prepare
IRD enquiry letters explained: the common types, the reply deadlines, the documents to gather, what happens if you ignore one, and when to get help.
About 6 min read
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Hong Kong Certificate of Resident Status: How to Apply
Tax resident certificate: how to get a Certificate of Resident Status from the IRD to claim treaty benefits with the mainland, plus the 2023 relaxation.
About 6 min read
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Late Tax Filing Penalty in Hong Kong: How to Put It Right
Late tax filing in Hong Kong can trigger an estimated assessment, penalties and additional tax. How each tier works and the one-month window to object.
About 6 min read
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Salary vs Dividends in Hong Kong: The Tax Maths for Owners
Salary or dividends in Hong Kong: no dividend tax changes the maths. Compare profits tax against salaries tax rates and find the mix that costs less.
About 6 min read
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Hong Kong Tax Loss Carry-Forward: Rules and Limits
Tax losses in Hong Kong carry forward indefinitely, but there is no carry-back, no group relief, and a major shareholding change can restrict their use.
About 6 min read
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Dormant Company Status in Hong Kong: What It Really Saves
Dormant company status in Hong Kong: the strict no-transaction test, the special resolution and 15-day filing, what it exempts, and when to close instead.
About 6 min read
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What Expenses Are Tax Deductible for Hong Kong Companies?
Tax-deductible expenses for Hong Kong companies: 20 common cases in one table, the governing test, enhanced deductions, and where claims most often fail.
About 6 min read
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Profits Tax Deadlines: N, D, M Codes and Block Extension
Profits tax return deadlines: how the N, D and M year-end codes work, the block extension dates, a new company's first return, and what an extension delays.
About 5 min read
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Provisional Profits Tax: How to Apply for a Hold-Over
Provisional profits tax explained: why a first bill looks doubled, how the payment on account works, and the grounds and deadline to apply for a hold-over.
About 6 min read
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Offshore Profits Claim in Hong Kong: The Source Test
Offshore profits claims in Hong Kong are not automatic: how the source test works, what evidence the IRD asks for, and how FSIE now treats passive income.
About 6 min read
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First Profits Tax Return for a New Hong Kong Company
First profits tax return for a new Hong Kong company: when it arrives, why the first period can exceed 12 months, what to prepare, and choosing a year end.
About 6 min read
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Hong Kong Profits Tax: Rates, Basis Periods and Filing
Profits tax in Hong Kong: two-tiered rates from 8.25%, the territorial source rule, basis periods, filing deadlines, and three common misconceptions.
About 6 min read
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Two-Tiered Profits Tax Rates: Who Qualifies in Hong Kong
Two-tiered profits tax rates: the half rate on the first HK$2 million, who qualifies, the connected-entity restriction, and which company to nominate.
About 6 min read
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