Section 51C of the Inland Revenue Ordinance requires every person carrying on a trade, profession or business in Hong Kong to keep sufficient records in the English or Chinese language of his income and expenditure to enable the assessable profits to be readily ascertained and such records shall be retained for a period of not less than 7 years.  Our professional accounting and bookkeeping services are managed by experienced accountants, coupled with the use of professional accounting software for accounts management, allowing clients to experience high quality accounting services, including:

Hong Kong company needs only to pay Profits Tax every year, which is calculated by 16.5% (2007/08:17.5%) of the profits. The company without profits needs to pay no Profits Tax.

It is generally 31 March to 31 December of each year for the basis period of taxation according to custom. Hong Kong company has maximum 18 months for the first year’s basis period of taxation.

Generally imported/exported commodities need not be levied tariffs, except tobacco, liquor, and petroleum. But import/export commodities must be declared at customs.

There are three kinds of taxes in Hong Kong taxation: Profits Tax, Salaries Tax and Property Tax. Profits Tax shall be 16.5% (2007/08:17.5%) of the taxable profits of the company; Salaries Tax shall be calculated by salary income at progressive tax rate, and paid up to 15% (2007/08:16%) of total salary income; Property Tax 15% (2007/08:16%) of the net rent income earned from owning properties after deduction of 20% standard tax relief for renovation and expenditure.

The base period of assessment shall be one of the following periods:
The year ended on 31 March or 31 December, commonly
The year ended by the end of another month as permitted

Donation granted to a recognizable charitable organization is permitted to be deducted, but total assistance as required shall not be less than $100 and not more than 35% (2007/08:25%) of assessable profits.