Parents or grandparents who are 55 years old or above and usually reside in Hong Kong can claim a tax exemption. For the 2025/26 year, the maximum amount is HK$100,000 per person; starting from 2026/27, the amount will be adjusted, and each dependent can only be claimed by one taxpayer. Summary: Parents, grandparents, or great-grandparents who are 55 years old or above and usually reside in Hong Kong can claim the dependent parent tax exemption. For the 2025/26 year: HK$50,000 for each person aged 60 or above; HK$25,000 for each person aged 55 to 59. Eligible for continuous...

Salaries tax is levied at the lower of progressive tax rates or standard tax rates. For 2025/26, the basic tax exemption is HK$132,000, and the one-time reduction cap is HK$3,000; starting from 2026/27, multiple tax exemptions will be adjusted, and utilizing tax exemptions and deductible items can legally save tax. Summary: The salaries tax assessment year runs from April 1 each year to March 31 of the following year, and the tax department will automatically calculate the lower tax amount using progressive and standard tax rates. For 2025/26, the basic tax exemption is HK$132,000, and the one-time salaries tax reduction cap is HK$3,...

It is the legal responsibility of employers to assist employees with tax filing, and they must submit the BIR56A summary and IR56B individual remuneration reports on time, covering any employees with remuneration income, to avoid late penalties and legal risks, ensuring tax compliance. Summary: The employer's tax return (BIR56A + IR56B) is a statutory document that Hong Kong employers must submit to the tax department annually to report employee remuneration. The tax return must be submitted within one month of receipt, and full-time, part-time, and directors must all be included in the reporting scope. Late submissions will face penalties and may trigger stricter tax audits in the future. Companies without employees must also submit BI...

Do you want to know if you have to pay tax on dividends in Hong Kong? Lafont Business Consultancy takes you through the tax rules and corporate tax deductions in one go, helping you to understand Hong Kong company dividends, what to look out for and the conditions of company dividend payout!

Unlimited companies are exempt from audit and only need to pay profits tax. Sole proprietorships fill out BIR60; partnerships fill out BIR52. If the turnover exceeds HKD 2 million, financial statements must be submitted together. Key summary Tax rate benefits: Implement a two-tier profits tax system The profits tax rate for the first HKD 2 million is only 7.5%, and thereafter it is 15%. Tax forms are sent out around April each year, and can be filed in paper or electronically. Sole proprietorships fill BIR60; partnerships fill BIR52. Office rent, salaries, etc. are tax-deductible. Owner's salary, personal expenses, and fines are not tax-deductible. Unlimited companies need to pay...

Companies engaged in business and earning local profits in Hong Kong are required to pay profits tax. Limited companies adopt a two-tier tax rate (8.25% / 16.5%), while the tax rate for unlimited companies is 7.5% / 15%. Summary: Hong Kong profits tax only targets profits generated in Hong Kong, and overseas profits can apply for exemption. The two-tier tax rate for limited companies: the first HK$2 million at 8.25%, thereafter at 16.5%; for unlimited companies, it is 7.5% / 15%. The deadline for Class D for the 2025/26 year is August 15, 2026, and for Class M it is 2026...