BENEFIT FROM
CROSS-BOUNDARY
BUSINESS

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From Clients

Additional
Services

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Helen YOUNG

“Thank you for arranging my company’s financial statements and tax computations for the past years. I am most impressed with your dedication and hard-working attitude towards my account. You are a star!”
Services Used
- Company Maintenance
- Accounting & Tax
- Virtual Office
David XU

“First of all, thanks very much for your arrangement and the reminding email on my tax reporting issues. Thanks again for your professional approach and I am really appreciated.”
Services Used
- Accounting & Tax
Christian OHL

“I'd like to thank you for your continuous support and reminding me for the outstanding documents. If we start our business in HK again, I will definitely remind Bridges as our local reliable support.”
Services Used
- Accounting & Tax

Additional Services

Accounting Service

Handled by our in-house qualified accountants, our full services give you peace of mind your work is in good hands.

Audit Coordination

For submitting SME / PE / main GAAP reports to the IRD, audit coordination is a must for every limited company in HK.

Virtual Office

By using our registered address, our team can remind you promptly and give you useful advice when tax letters are received.

Company Secretary

Combining your company secretary duties and accounting work together will save you lots of hassles & build a strong foundation.

SERVICE PROCEDURE

Step 1

Handle Tax
Returns

NEED ADVICE?

Step 2

Start Audit
Coordination

Step 3

Submit to the
IRD on Time

Step 4

Support like
Tax Strategies

TAX SERVICE PACKAGES

HK TAX
Filing

DETAILS

HK TAX
Clearance

DETAILS

CERTIFICATE OF
Resident Status

DETAILS

OFFSHORE
Profits Claim

DETAILS

HK TAX
Filing

Filling of HK Tax Return
Profits Tax Return
Employers' Return
Individual Tax Return
Property Tax Return
Value-Added Services
Compliance Advice by Skilled Expert

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HK TAX
Clearance The Employee has to clear all the tax issues before departing from HK permanently or for a period longer than one year, and official notification should be sent to IRD by both the Employee and his / her Employer.

To Arrange on Behalf of the Employer
Update the Inland Revenue Dept (IRD)
Update the Immigration Dept
Update the MPF Service Provider
Update the Employee Compensation Services Provider
To Arrange on Behalf of the Employee
Documents for Tax Clearance with the IRD
Update the MPF Service Provider
Arrange Declaration for Departure
Arrange Bank-in of MPF Refund Cheque Value-Added Services
Value-Added Services
Compliance Advice by Skilled Expert

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CERTIFICATE OF
Resident Status HK Residents are able to claim tax benefits under the Comprehensive Double Taxation Agreements / Arrangement (DTAs) by applying this Certificate toward corresponding authority in HK.

To Process Application with the HK Competent Authority
To Act as the Authorised Representative in Following up with the HK Govt
Required Completion of Personal Tax or Profits Tax Before Application
Value-Added Services
Compliance Advice by Skilled Expert

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OFFSHORE
Profits Claim HK incorporated Companies with complete overseas business operation, which do not earn any profits arising in or derived from HK are eligible to apply Offshore Profits Claim to get the tax exemption from HK Profits Tax.

Front-End Financial Reporting
Audit Coordination
Filing of Profits Tax Return
Tax Computation
Tax Review on Your Tax Liability
To Lodge an Offshore Claim to the IRD If Suitable
To Act as the Authorised Tax Representative in Following up with the IRD (e.g. Query Letter)
Value-Added Services
Compliance Advice by Skilled Expert

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* Service charges will vary based on different case scenarios, therefore it is suggested to talk with our advisors first to consult and learn more.

DID YOU KNOW HK TAX RATE?

Profits Tax	2022/2023
Companies: 2018/19 onwards	8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000
Unincorporated Businesses: 2018/19 Onwards	7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000

Property Tax	2022/2023
Standard Rate: 2008/09 Onwards	15%

Salaries Tax	2022/2023
First HK$50,000: 2018/19 Onwards	2%
Next HK$50,000: 2018/19 Onwards	6%
Next HK$50,000: 2018/19 Onwards	10%
Next HK$50,000: 2018/19 Onwards	14%
On the Remainder: 2018/19 Onwards	17%
Standard Rate: 2016/17 Onwards	15%

Personal Allowances	2022/2023
Basic Allowance	HK$132,000
Married Person's Allowance	HK$264,000
Child Allowance
Each Child (1st to 9th)
- Year of Birth	HK$120,000
- Other Years	HK$120,000
Dependent Parent / Grandparent Allowance
Aged 60 or Above	HK$50,000
Aged 55 to 59	HK$25,000
Additional Dependent Parent / Grandparent Allowance
Aged 60 or Above	HK$50,000
Aged 55 to 59	HK$25,000
Dependent Brother / Sister Allowance	HK$37,500
Single Parent Allowance	HK$132,000
Personal Disability Allowance	HK$75,000
Disabled Dependant Allowance	HK$75,000

Maximum Deduction for Expenses	2020/2021
Self-Education Expenses	HK$100,000
Approved Charitable Donations	35% of assessable income
Mandatory Contributions to Recognised Retirement Schemes	HK$18,000
Elderly Residential Care Expenses	HK$100,000
Home Loan Interest	HK$100,000
Qualifying Annuity Premiums and Tax Deductible MPF Voluntary Contributions	HK$60,000
Qualifying Premiums Paid under Voluntary Health Insurance Scheme Policy (For Each Insured Person)	HK$8,000

* Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2022-23 Budget.

Common Questions

If I’m the ONLY staff of my own co., do I need to file Employer’s Return?

According to the Companies Ordinance, even if your company does not have any paid staff during the fiscal year, it is still mandatory to file the Employer's Return within the indicated time (normally about 30 days) when it is received.
If your identity is a Director, then you are entitled to either one of these remunerations: Director’s fees or Director’s salary. Both are taxable.
Thus, even if you did not hire any other staff in your company, as an active Director of the business, you ought to report your remunerations to the Inland Revenue Dept (IRD) through the filing of Employer’s Return.

What types of tax returns I’ll need to file in HK?

There are mainly 3 types of tax returns you will need to file to the IRD: Employer's Return, Profits Tax Returns and Individual Tax Return. Each entrepreneur is obligated to file these 3 tax returns each year ever since the first return is received.
Typically both Employer's Return and Profits Tax Return will be issued on the first working day of April each year from the IRD; while the Individual Tax Return will be issed on the first working day of May each year. You ought to complete your tax filing within 30 days from the date of issue, or there could be penalties or even prosecution against you.

Do I need to file tax returns to the HK Govt for my offshore business?

One of the key factors for this question is whether your company truly owns a complete offshore business. For those companies registered in offshore jurisdictions but having profits derived from HK, they are still liable to HK Profits Tax, which means these businesses still need to file the Profits Tax Return to the IRD of HK.
On the contrary, if your business does not have any profits arising in or derived from HK, no matter where the company is registered (in HK or offshore jurisdictions), it is possible that your company can be claimed as an 'offshore business'. Certain criteria need to be met to qualify for such definition, e.g. the terms of purchase / sales are negotiated and concluded outside HK, etc.
To prove your profits are not liable to HK tax, it is advised to plan properly with a skillful specialist at the initial stage.

Someone told me I can skip my Profits Tax Return if no income. Is that true?

Absolutely NOT. In any case, every HK limited company owner is obligated to file the Profits Tax Return along with well-prepared audit reports and tax computation to the IRD, even if your company is not generating any profits.
Yet, it is possible that after a few years of unprofitable performance, your company may stop receiving the Profits Tax Return. Under this situation, the company is not required to contact the IRD again unless it starts earning profits in the current fiscal year. Then, you are obligated to notify the IRD of its tax chargeability within 4 months after the end of the profit-making year.

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