Tax planning: Income tax, capital gains
Individuals and business firms have to collect or pay various forms of taxes including profit tax, salaries tax, property tax and stamp duty. Our professionals are often engaged to aid in tax planning to minimize the tax liability of individuals and businesses, consistent with the rules and regulations established by Inland Revenue Department.
Our services include:
- Acting as client’s tax representatives, preparation and filing of tax returns;
- Preparation of tax planning and advice on tax matters for companies and
individuals to minimize their tax liabilities legally; - Stamp duty planning;
- Preparation and filing of Employer’s Return of Employees’ Remuneration;
- Tax returns for individuals
- Preparation and filing of Property Tax Returns
- Tax returns for individuals and preparation of Personal Assessment Returns;
and - Assistance in handling Inland Revenue Department enquiries, tax field audits,
tax investigation and appeals.
Capital Gains
Exemption is available on a capital gain derived by a Hong Kong investor from the disposal of shares in a Mainland company, provided that the shares sold are less than 25% of the shareholding of the Mainland company and the assets of the Mainland company are not comprised mainly of immoveable property situated on the Mainland. However, the implementation of this exemption is subject to the interpretation of the tax authorities in the Mainland.
Given the fact that there is no tax on gains from the sale of capital assets in Hong Kong, this article would effectively give a unilateral benefit to Hong Kong taxpayers. Although the exemption only applies to the sale of a minority interest in a Mainland company, it should still provide a relief for certain Hong Kong investors.
