For stamp duty assessment, depending on the type of transaction, relevant documents should be submitted to the Inland Revenue Department. Stamping can be conducted electronically or manually. Stamping of Agreements and Assignments of Sale and Purchase cases Stamping of Agreements and Assignments of sale and purchase cases can be conducted with or without presenting the … Read more
Stamp duty is charged on documents connected with conveyance on sale, agreement for sale or lease of immovable property, and share transfer. For the first three situations, all parties and all other persons executing such transactions are liable for stamp duty. For share transfer, the agent or the principal affecting the sale or purchase of … Read more
While it is not clearly stated by the IRD, holding a property for a very long time is generally seen as strong support of not a speculative transaction. However, the length of holding period is one of the facts for IRD to determine if a business has been carried on. You should be prepared in … Read more
Taxpayers can claim deductions for home loan interest (HLI) under salaries tax and personal assessment. The taxpayer has to satisfy the following conditions before a deduction can be granted: you are the owner of the dwelling (either as a sole owner, a joint tenant or a tenant in common) and ownership is by reference to … Read more
Elderly residential care expenses are the fees charged by the residential care home. If the fees charged are fully met by the Comprehensive Social Security Assistance Scheme Allowance (CSSA), the taxpayer is not entitled to a deduction for elderly residential care expenses because s/he has not paid for such expenses. However, he/she may claim dependent … Read more
There are 7 types of personal allowances that are available: Married Person’s Allowance Child Allowance Dependent Brother or Dependent Sister Allowance Dependent Parent and Dependent Grandparent Allowance Single Parent Allowance Disabled Dependent Allowance Personal Disability Allowance Reference: https://www.ird.gov.hk/eng/faq/all.htm
Depending on income level and personal allowances, PA is a possible way to save tax. In case you have elected PA but it will result in more tax to pay, your income will be automatically assessed as if you do not elect PA. Reference: https://www.ird.gov.hk/eng/faq/pa.htm
Part 3 of the Individual tax return (BIR 60) caters for SOLELY-OWNED properties only. You should use a Property tax return (BIR 57) to return jointly-owned property income. In the case of company-owned property income, the form is BIR 58. Reference: https://www.ird.gov.hk/eng/faq/pa.htm
A Personal Assessment (PA) is critical to saving tax for taxpayers who earn only rental income or sole proprietary business profits. By electing PA, taxpayers are entitled to claim personal allowances (self, married, child, dependents etc.) available automatically for salary earning taxpayers. To enjoy PA, you must be ordinarily residing in Hong Kong. A holder … Read more
Yes. For the contribution by the employer to the MPF scheme, the amount deductible cannot be more than 15% of the total emoluments of the employee. The costs related to the MPF scheme, such as the establishment of the MPF scheme, amending the rules and winding up the occupational retirement scheme, are deductible. An important … Read more