Accounting is the preparation of financial statements of the company. The process begins with book-keeping, which is to record the company’s transactions.
Financial statements are reports that allow interested parties to evaluate the profitability and solvency of a company.
These reports include the following:
- Balance Sheet
- Income Statement
- Statement of Owner’s Equity
- Statement of Cash Flows
According to the Inland Revenue Department and Company Ordinance Section 121, Section 122 & Section 123, companies should maintain proper books of records.
Asia Pacific Business Center (HK) has professional and experienced staffs to provide full range of high quality accounting services to your companies.
Accounting Service Fee
- Using accounting software to do the necessary entries based on the invoices and bank statements provided by client and we shall provide various financial reports quarterly.
|Transaction Number per month||On monthly basis
|On yearly basis
|Not Exceed 5 Numbers in transaction||188||2,256|
|From 6 to 10 Numbers in transaction||388||4,656|
|From 11 to 30 Numbers in transaction||1,100||13,200|
|From 31 to 50 Numbers in transaction||1,300||15,600|
|From 51 to 70 Numbers in transaction||1,500||18,000|
|From 71 to 90 Numbers in transaction||1,700||20,400|
|Exceed 91 Numbers in transaction||Negotiable||Negotiable|
|The fee is adjusted by the transaction number per month.The above fees are for guidance only. Actual fee are based on the nature of each company.|
Tax planning is the process to minimize tax liability legally, for both individuals and cooperation.
Do not hesitate to contact us for your tailored made tax planning!
According to Hong Kong Inland Revenue Ordinance, there are three types of taxes in Hong Kong- Profits Tax, Salaries Tax and Property Tax. The year of assessment is from 1 April of current year to 31 March of next year.
Hong Kong adopts a territorial taxation system, only profits derived in Hong Kong are taxable. Profits derived outside Hong Kong are not subject to Hong Kong Profits Tax.
- 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.
- Current Tax Rate 2015/16: 16.5%
- Property tax is levied on the owners of real estate which is situated in Hong Kong. A corporation letting property in Hong Kong is regarded as carrying on business in Hong Kong and should be subject to profits tax in respect of its property income.
- Current Tax Rate 2015/16: 15%
In general terms, this tax is imposed on all income arising in or derived from Hong Kong from an office, employment or pension.
In deciding whether income “arises in or is derived from Hong Kong”, it is necessary to establish where the employment, for example the source of income, is located.
Your net chargeable income, ie assessable income after deductions and allowances, is charged at progressive rates. But if what you need to pay on the basis of your net chargeable income exceeds the tax charged at standard rate on your net total income, ie assessable income after deductions but before allowances, then you have to pay the lower amount of tax.
Salaries Tax (Current Tax Rate 2015/16: 16.5%)
Example for progressive rates (assume that assessable income after deductions and allowances = $132,000)
|Net chargeable Income||Rate||Tax|
|On the First||40,000||2%||800|
|On the Next||40,000||7%||2,800|
|On the Next||40,000||12%||4,800|
In every year of assessment you are entitled to a basic allowance. You can also claim:
|Year of Assessment||2015/16||2016/17|
|Child Allowance (For each dependent) the 1st to 9th child (year of birth/ other years)||200,000/ 100,000||200,000/ 100,000|
|Dependent Brother or Sister Allowance (For each dependent)||33,000||33,000|
|Dependent Parent and Dependent Grandparent Allowance (For each dependent) Parent / grandparent aged 60 or above (residing / not residing with taxpayer)||92,000/ 46,000||92,000/ 46,000*|
|Dependent Parent and Dependent Grandparent Allowance aged 55 or above but below 60 (for each dependent)(residing/ not residing with taxpayer)||46,000/23,000||46,000/23,000|
|Single Parent Allowance||120,000||132,000*|
|Disabled Dependent Allowance (For each dependent)||66,000||66,000|
|Other deductions (Maximum Amount)||2015/16||2016/17|
|Contribution to recognized retirement scheme||18,000||18,000|
|Elderly residential Care expenses||80,000||92,000*|
|Home Loan Interest||100,000||100,000|
|Self- education expenses||80,000||80,000|
*Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2015-16 Budget.
The Government has introduced a Buyer’s Stamp Duty (“BSD”) on residential properties with effect from 27 October 2012. Upon the enactment of the relevant legislation, any residential property acquired by any person (including a company incorporated) except a Hong Kong Permanent Resident will be subject to the BSD. BSD is to be charged at a flat rate of 15% on all residential properties, on top of the existing stamp duty and the special stamp duty, if applicable.
Special Stamp Duty (SSD)
On 26 October 2012, the Government has amended the Stamp Duty Ordinance to adjust the rates and to extend the holding period in respect of Special Stamp Duty (SSD). Any residential property acquired on or after 27 October 2012, either by an individual or a company (regardless of where it is incorporated), and resold within 36 months, will be subject to the new rates of SSD upon the enactment of the relevant legislation. Transactions which took place within 20 November 2010 and 26 October 2012 will be subject to the original SSD regime.
If the residential property acquired within 20 November 2010 and 26 October 2012:
|6 months or less||15%|
|More than 6 months but for 12 months or less||10%|
|More than 12 months but for 24 months or less||5%|
If the residential property acquired on or after 27 October 2012:
|6 months or less||20%|
|More than 6 months but for 12 months or less||15%|
|More than 12 months but for 36 months or less||10%|
Ad valorem stamp duty (AVD)
With effect from 23 February 2013, unless specifically exempted or otherwise provided, stamp duty on sale or transfer of immovable property in Hong Kong is chargeable with ad valorem stamp duty (AVD) at higher rates (Scale 1)(Scale 2). The rates at Scale 1 are as follows:
(Where the stamp duty calculated includes a fraction of $1, round-up the duty to the nearest $1.)
|Consideration or value of the property (whichever is the higher)||Rate|
|Up to $2,000,000||1.5%|
|$2,000,001 – $2,176,470||$30,000 + 20% of excess over $2,000,000|
|$2,176,470 – $3,000,000||3%|
|$3,000,000 – $3,290,330||$90,000 + 20% of excess over $3,000,000|
|$3,290,330 – $4,000,000||4.5%|
|$4,000,000 – $4,428,580||$180,000 + 20% of excess over $4,000,000|
|$4,428,580 – $6,000,000||6%|
|$6,000,000 – $6,720,000||$360,000 + 20% of excess over $6,000,000|
|$6,720,000 – $20,000,000||7.5%|
|$20,000,000 – $21,739,130||$1,500,000 + 20% of excess over $20,000,000|
|$21,739,130 and above||8.5%|
|Consideration or value of the property (whichever is the higher)||Rate|
|Up to $2,000,000||$100|
|$2,000,001 – $2,176,470||$100 + 10% of excess over $2,000,000|
|$2,176,470 – $3,000,000||1.5%|
|$3,000,000 – $3,290,330||$45,000 + 10% of excess over $3,000,000|
|$3,290,330 – $4,000,000||2.25%|
|$4,000,000 – $4,428,580||$90,000 + 10% of excess over $4,000,000|
|$4,428,580 – $6,000,000||3%|
|$6,000,000 – $6,720,000||$180,000 + 10% of excess over $6,000,000|
|$6,720,000 – $20,000,000||3.75%|
|$20,000,000 – $21,739,130||$750,000 + 10% of excess over $20,000,000|
|$21,739,130 and above||4.25%|
- If you object to an assessment or suffered tax recovery by IRD, we can provide you professional advices and methods.
We can provide professional advices related to taxation and calculate your tax liability under salaries tax or personal assessment after deductions and allowances, as well as filing the tax returns.
|Our Services||Fee (HKD)|
|Profits Tax Returns – (B.I.R.51) / (B.I.R.52)||3,000||Order Now|
|Individual tax returns (B.I.R.60)||1,000||Order Now|
|Property tax return (B.I.R.57 / 58)||1,000 up||Order Now|
|Employer’s Return of Remuneration & Pensions (I.R. 56B)||500 (each copy)||Order Now|
|Notification of remuneration paid to persons other than employees (I.R. 56M)||500 (each copy)||Order Now|
|Reply to Hong Kong Inland Revenue letters (Each reply)||1,500 up||Order Now|
|Against the tax assessment on behalf of Client||1,000||Order Now|
|Application for extension of tax returns on behalf of Client||1,000||Order Now|
|Handling inquiries and investigations form IRD||Negotiable|
|Provide professional legal tax planning||Negotiable|
|Salary Tax return||1,000 up||Order Now|
|Sole Proprietorship Profit tax return||3,000 up|
|Partnership Profit tax return||3,000 up|
For any enquiries, please contact Asia Pacific Business Center (HK) at 2803 6666, via fax 2803 6799 or via email.