Hong Kong Tax Authority Issues Tax Returns

CENTRAL, Hong Kong - April 6, 2018 - PRLog -- The Inland Revenue Department issued profits tax returns for the year of assessment 2017-18t o companies registered in Hong Kong on 3rd April.
This year's budget included a proposal for a one-off reduction of 75% of profits tax for 2017-18, subject to a ceiling of $30,000 which will be effective upon enactment of the relevant legislation. The IRD will automatically factor this reduction into the tax assessment.
Further, the implementation for a two-tiered tax regime from the year of assessment 2018-19 onwards will be considered in provisional taxation. Item 2.3 of BIR51 had added for declaring the 2018/19 Provisional Tax to be chargeable at two-tiered rates.
Under the two-tiered profits tax rates regime the profits tax rate for the first $2 million of assessable profits of corporations and unincorporated businesses will be lowered to 8.25& and 7.5% respectively. Profits above that amount will continue to be subject to the corporation rate of 16.5% and the standard rate of 15% respectively. For connected entities, the two-tiered rates will only be applicable to one entity nominated among them. In the 2017-18 profits tax returns, taxpayers are required to state whether they are chargeable at the two-tiered rates for 2018-19 provisional tax and, for taxpayers having any connected entities, whether any other connected entity has elected two-tiered rates.

The filing of the profits tax return is due within one month after receipt, unless the company has been included in the block extension scheme.

For more information about completing the tax return, compliance and inclusion in the block extension scheme, visit our website at https://www.encorepro.com