Category Taxation and audit report

Hong Kong Two-tiered Profits Tax Rates Regime

Hong Kong Two-tiered Profits Tax Rates Regime

What Is a Two-Tiered Tax Rate? The Two-Tiered Tax Rates Regime involves two profit tax rates. Under the new system, the first HK$2 million of a company’s profits are taxed at a lower profits tax rate of 8.25%, while profits above HK$2 million are taxed at the standard profits tax rate of 16.5%.

The profits tax rate for the first HK$2 million (US$250,000) of profits of corporations will be lowered to 8.25%. Profits above that amount will continue to be subject to the tax rate of 16.5%.

The hong Kong Two-Tiered Profit Tax has been implemented to support small and medium-sized enterprises. This will reduce the tax burden on enterprises, especially SMEs and startup enterprises, and will help foster a favorable business environment, drive economic growth, create job opportunities and enhance Hong Kong’s competitiveness.

However, if an entity has one or more connected entities, the two-tiered profits tax rates can only apply to one nominated entity among its connected entities. The others will not qualify for the two-tiered profits tax rates. 

Interest, gains or profits derived from qualifying debt instruments that are already subject to tax at half-rates under the existing provision will be excluded from the proposed two-tiered profits tax rates regime.

Management Accounts Services

Finance Management Accounting Services

We are one of the leaders in management accounting services, managing vital financial data and providing perfect solutions for the clients for the development of your respective business.

Forecasting and planning, performing variance analysis, reviewing and monitoring costs is done by our registered chartered accountants who will act as your finance director.

We have expertise in providing the following services:

  • Prepare management reports on regular basis to keep up continuous records of your cash flow.
  • We act as a mediator to set all your contractual obligations coming in management accounts.
  • Our proper guidance makes you to stick to your core competency so that people can’t compete with you.
  • We take care of all the reports and makes sure that all the reports are in sequence, data has to make sense and to have proper documentation to back it up.
  • Our strategic approach makes us different from others.
  • Identify–>Analyze–>Record–>Post–>Prepare Trial balance.
  • Reports can be generated depending on your business type and as per your requirements. We can manage your accounting reports monthly, quarterly, half yearly or any other period.

Avail the following reports from us:

Cash Reports
Status Reports
Profit and Loss Reports
Projected accounting for 5 years and much more.

Following services are provided

  • Generate regular management reports to monitor your cash flow, observe trends and seek additional capital (if required) based on accurate forecasts
  • Assistance on meeting your contractual obilgations of providing management accounts on a regular basis.
  • We guide you to ensure that your business is on the right track and in line with your anticipated / projected sales /income / expenditure / profits.
  • Our reports can help you make management decisions to get your company back on track and / or stay on track to profitability.
  • Reports are generated on monthly, quarterly, half yearly or any other period that is required by you.

We prepare all management accounts as per your requirement and deliver it as per agreed time lines.