"Low tax rate and encouragement of business operation" is a policy persistently followed by the Hong Kong Government. Among the many advantages that Hong Kong has with respect to taxation is that Hong Kong provides enterprises the most satisfactory business environment to help investors expand their businesses.

As a Hong Kong-based professional consulting company, PFR is experienced in taxation, accounting, auditing, risk management and other areas; formulating feasible tax service plans according to the characteristics and actual needs of certain industries which the enterprises belong to.

Main Taxes

• Profits Tax
• Salaries Tax
• Property Tax
• Hong Kong Customs Duty

Offshore Claim

Considering that Hong Kong adopts "Territorial Source Principle", the tax payers who make their income outside of Hong Kong may not pay tax in Hong Kong, but need to apply for tax exemption or advance ruling from the HKIRD.

Avoidance of Double Taxation

Double taxation may occur when two or more regions collect tax on the same income or profit made by the same tax payer. Hong Kong government has signed avoidance of double taxation agreements with many countries and regions in the world and explicitly determined the taxing rights in order to reduce double taxation on Hong Kong residents or corporations, or residents or corporations from other side of agreement.

Our Services

• Tax advisory
• Preparation and filing of tax returns
• Exemption of Profits Tax in Hong Kong
• Exemption of Hong Kong Salaries Tax
• Tax burdens appraisal
• Declaration of extension and tax objection
• Declaration of salaries tax
• Tax controversy services
• Tax Field Audit and Investigation

Main Taxations levied by "Inland Revenue Ordinance"

In the current tax system, China's taxation includes taxation on turnover (including value added tax, consumption tax, business tax and customs duty), taxation on profits/income (including corporate income tax for enterprises with foreign investment and foreign enterprises, and individual income tax), taxation on property and deeds (including real estate tax, contract tax and stamp duty), and taxation on natural resources (including resources tax), which are respectively in relation to different objects of taxation.

Moreover, China's taxation can be categorised into central taxation, local taxation, as well as local & central sharing taxation, in terms of revenue attribution and collection jurisdiction, according to which, the tax preferences and tax rates enjoyed by different corporations are always different.

In PFR CPA Limited, tax professionals experienced with many years of domestic taxation handling are proficient in the assessment of tax risks of investment projects, for clients. They can provide tax planning and consulting which suitable to a company's operating program, solve relevant tax issues for clients who are operating in mainland China, and help foreign staff process their individual income tax, and other services. By virtue of our tax consulting service, corporations served by us will have a greater competitive edge.

Our Services Include:

• Long-Term Tax Advisory
• Application and Advisory for Tax Preferences
• Tax Declaration
• Individual Income Tax Declaration for Foreigners
• Tax Planning of Fixed Assets
• Customs Duty and Goods Tax Advisory
• Domestic Investment Structure Assessment
• Transfer Pricing Service
• Provision of the Latest China Taxation Ordinances, Amendment of Rules and Regulations, as well as Practice Bylaw Materials.
• Diagnosis of China Taxation

Major Taxation in Mainland China, are as follows:

• Corporate Income Tax
• Value Added Tax
• Consumption Tax
• Customs Duty
• Individual Income Tax
• Real Estate Tax
• Land Value Added Tax
• Stamp Duty

Schedule of Taxation Involved in Foreign Enterprises in Major Industries