HKB Secretary & Consultants

Tax Planning

Hong Kong Tax Planning Services

Strategic Tax Planning Services

Navigate Hong Kong's tax complexities with expert guidance. Optimize your tax position through strategic planning while ensuring full compliance with territorial taxation principles.

Hong Kong Tax Advantages

16.5%
Standard Rate
8.25%
First HK$2M
0%
Capital Gains
Territorial
Tax System

Reduced Tax Burden

Legally minimize tax liabilities through strategic planning, freeing up capital for reinvestment, expansion, or distribution.

Improved Cash Flow

Optimize tax payments and timing to better manage business cash flow and working capital requirements.

Compliance Assurance

Ensure all tax obligations are met accurately and on time, avoiding penalties and disputes with Inland Revenue.

Strategic Structuring

Tax considerations influence business structure, investment decisions, and financing to optimize overall position.

Comprehensive Tax Planning

Hong Kong's Territorial Tax System

Territorial Basis: Only income or profits sourced in or derived from Hong Kong are subject to tax. Offshore profits are generally not taxed, even if remitted to Hong Kong.

Low Tax Rates

16.5% standard rate, 8.25% on first HK$2M profits

No Capital Gains Tax

Capital asset sales generally not taxed

No VAT/GST

No value-added or goods/services tax

No Withholding Tax

Dividends and interest payments not subject to withholding

Salaries Tax

Progressive rates or standard rate, whichever is lower

Stamp Duty

Applicable on stock transfers and property transactions

Key Tax Planning Areas

  • Profits Tax Optimization:
    • Offshore profits claims and territorial analysis
    • Maximizing allowable deductions and expenses
    • Capital allowances on plant and machinery
    • Tax loss carry-forward strategies
  • Business Structuring: Tax-efficient business structure setup and group restructuring
  • Transfer Pricing: Arm's length pricing guidance and documentation for associated parties
  • Tax Incentives: R&D expenditure, corporate treasury centers, and industry-specific concessions
  • Cross-Border Transactions: International transaction sourcing and Double Taxation Agreement application
  • Individual Tax Planning: Salaries tax optimization, deductions, and tax-efficient remuneration

HKB Tax Planning Approach

Understanding Your Business

Comprehensive analysis of operations, structure, financial situation, and long-term goals

Identifying Opportunities

Identify potential tax optimization areas and strategies for your unique circumstances

Developing Strategies

Formulate legitimate tax planning strategies aligned with business objectives

Implementation Support

Assist with strategy implementation, documentation, and restructuring if required

Ongoing Review

Periodic review and support to ensure strategies remain effective and compliant

Strategic Tax Planning Benefits

  • Reduced Tax Burden: Legally minimize tax payable through strategic arrangements
  • Enhanced Cash Flow: Better cash flow management through optimized tax payments
  • Compliance Assurance: Accurate, timely tax obligations avoiding penalties and disputes
  • Strategic Business Decisions: Tax considerations influence structure, investments, and financing
  • Long-term Financial Health: Contributes to overall business stability and sustainability
  • Informed Decision Making: Understanding tax implications for strategic choices
  • Proactive vs Reactive: Strategic planning rather than mere compliance
  • Professional Expertise: Access to experienced tax professionals and current knowledge

Tax Compliance & Dispute Resolution

  • Tax Return Preparation: Profits Tax Returns, Employer's Returns, and individual tax returns
  • IRD Representation: Dealing with Inland Revenue inquiries, audits, and investigations
  • Advance Rulings: Applications for IRD advance rulings on uncertain tax positions
  • Tax Audits Support: Professional representation during tax audit processes
  • Dispute Resolution: Assistance with tax disputes and appeals procedures
  • Penalty Mitigation: Strategies to minimize penalties and interest charges
  • Voluntary Disclosure: Guidance on voluntary disclosure programs for past compliance issues

Proactive Compliance: We ensure all tax planning strategies are fully compliant with current legislation, safeguarding you from risks while maximizing legitimate tax efficiencies.

Optimize Your Tax Position

Navigate Hong Kong's tax system with confidence. Strategic tax planning is a continuous process requiring expert knowledge and careful consideration.