Hong kong Company Tax

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Hong Kong Book-keeping & Tax Return Hong Kong taxes are among the lowest in the world, and our tax regime is simple and predictable. Hong Kong sourced income can be taxed in three ways, Profits Tax, Salaries Tax and Property Tax. 1. Different Tax Return between limited & unlimited company 1) Audit: the audit by CPA is not required for the unlimited company; Limited company should first prepare for the account bills and carry out audit before tax return. 2) Profit Tax Rate: for the year of assessment 2008/09 Limited company: 16.5% Unlimited company: 15% 2. How to judge whether company can carry out zero tax return In HK the company which doesn’t carry out business can declare zero tax directly. Therefore it is extremely important to judge whether the company has operation in Hong Kong. In principle, if the company accords with one of the following aspects, it is considered to carry out business. 1) Bank account has the record of operation; 2) Custom and logistic company has the record of export and import; 3) Having business with HK merchant; 4) Employing staff in HK; 5) Allowance and authorization of using trademark, patent design in HK; 6) Allowance and authorization of collecting chattel rent fee in HK; 7) Entrust to sell products in HK; 8) Other profits arising in or derived from HK.