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Fiscal Representative in Hong Kong

Fiscal Representative in Hong Kong

A fiscal representative in Hong Kong, also referred to as a tax representative, is a person authorized to perform various tax matters on behalf of another party. His role is not limited to preparing tax returns, but it is related to all matters which are relevant in relation to the Hong Kong Internal Revenue Department.

For investors who open a company in Hong Kong, appointing a tax representative is an important step, especially when the investor will not be residing in Hong Kong to handle the ongoing tax compliance matters.

Our team is not only specialized in services related to setting up a company in Hong Kong but will also provide solutions for those interested in appointing a tax representative in Hong Kong.

The main duties of a fiscal representative in Hong Kong

The tax or fiscal representative is an appointed agent, a person who acts on behalf of the company and handles the respective legal entity’s filings and obligations with the Inland Revenue Department (IRD). The decision to appoint a fiscal representative in Hong Kong does not, however, equate with transferring liability.

The following are important when authorizing another party as a tax representative in Hong Kong:

  • The authorization is made in writing;
  • The taxpayer’s signature must be included in the authorization to appoint the tax representative;
  • An authorization by e-mail is not acceptable;
  • Any application to extend the appointment is accompanied by the relevant documents confirming the extension of such appointment.

If you want to set up a company in Hong Kong, appointing a tax representative can be one of the key steps during the incorporation process. If, however, you have already appointed a representative but are not interested in changing the provider, we are able to offer details on how to dismiss and appoint another fiscal representative in Hong Kong.

Entrepreneurs interested in setting up a company in Hong Kong can appoint a tax representative during the course of the company incorporation steps, with our assistance.

Hong Kong taxation

Once appointed, the fiscal representative in Hong Kong will be the one to handle the completion and submission of the profits tax return, as well as many other relevant submissions and communications with the IRD. Nonetheless, the taxpayer should be well aware of its obligations. The following taxes are relevant for Hong Kong companies:

  • The corporate income tax of 8.25% on the first HKD 2 million of assessable profits and 16.5% for companies on the remaining profits;
  • The lower corporate income tax of 7.5% for the first HKD 2 million and 15% on the remaining profits for unincorporated businesses;
  • The social security contributions of 5% of the relevant income, made to the MPF scheme, according to the applicable minimum and maximum income levels.

Hong Kong does not impose a dividend withholding tax or a value-added tax. The tax representative will be the one to make the regular tax filings and report the information required in the annual profits tax return, observing the prescribed time limit for this submission (generally one month from the issue date). The payment of a provisional profits tax is in place, which is generally calculated according to the company’s profits in the previous year.

Investors who require professional accounting services can reach out to our Hong Kong accountant for complete information about our packages, tailored according to the company’s needs.

Contact us for more information about the services offered by our fiscal representative in Hong Kong, as well as for a complete offer for company formation designed according to your business needs by our agents specializing in company formation in Hong Kong.