Tax prep support
Tax planning support
Year round planning support for Hong Kong companies: watching where profits fall against the two tiered rate bands, keeping the paper trail that supports a territorial sourcing claim, and timing group elections before year end instead of after the audit has started. We model the numbers, your practising CPA signs off anything that needs a formal position.
Tax working papers
Illustrative client · August 2026
HKD
- Year-end books closed and reconciledDone
- Fixed asset and depreciation scheduleDone
- Book-to-tax adjustments listedDone
- Supporting schedules for the preparerIn progress
- Handed to the signer for review and filingNext
Illustrative. An example of the document, not a client's figures.
Planning around the two tiered rate
Hong Kong taxes the first HK$2 million of assessable corporate profits at 8.25 per cent and everything above that at 16.5 per cent, with 7.5 per cent and 15 per cent for unincorporated businesses. Only one company in a group of connected entities can use the lower band, so we model group profit allocation early enough that the election, not a scramble at filing time, decides who claims it.
Keeping the territorial sourcing case current
Because only profits arising in or derived from Hong Kong are taxed, a business trading across the region needs a live file of contracts, invoices and operational evidence showing where each income stream was actually earned. We update that file through the year alongside the regular bookkeeping close, so the position is ready before the auditor asks for it, not built retroactively.
Timing decisions before they become fixed
Entity structure changes, the timing of dividend distributions and how a new revenue stream gets classified all sit easier before the numbers land in a set of accounts than after. We flag these decision points as they come up in the monthly close and bring in your practising Hong Kong CPA for anything that needs a formal tax position.
No VAT planning needed
Hong Kong has no VAT, GST or general sales tax, so planning here stays focused on Profits Tax, Salaries Tax exposure for owner-directors, and MPF contribution mechanics rather than an indirect tax calendar.
Building the plan around the audit calendar
Because every Hong Kong company faces an annual audit with no small-company exemption, a planning decision made after the year closes usually just becomes a note for the auditor rather than something that changes the outcome. We set planning checkpoints ahead of each close so a structure change or a sourcing decision still has time to take effect before the books are locked.
Delivery
Every month's work is reviewed by a senior principal before it reaches you, and your file stays in your own Xero, QuickBooks Online or Zoho Books account. Your practising Hong Kong CPA signs off any position that needs one.
Questions
Frequently asked questions: Tax planning support
Can you tell me which entity in my group should claim the lower tax band?
We model profit allocation across connected entities and flag the option, but the formal election runs through your practising Hong Kong CPA.
What evidence supports a territorial sourcing claim?
Contracts, invoices and operational records showing where the underlying work happened. We keep that file current through the year rather than reconstructing it at audit time.
Do you plan for VAT in Hong Kong?
No. Hong Kong has no VAT, GST or general sales tax, so planning here covers Profits Tax, Salaries Tax and MPF instead.
Do you give formal tax positions?
We model the numbers and flag decision points. A formal tax position or filing election is signed off by your practising Hong Kong CPA.
How often should tax planning conversations happen through the year?
At minimum once at mid-year and again ahead of year end, so decisions that affect where profits land, and which entity in a group elects the two-tiered rate, are made with enough runway rather than after the year has already closed.
Is this different from tax preparation?
Preparation reports what already happened. Planning looks ahead so this year's return has fewer surprises on it.
When should planning start?
Mid-year is usually the best window, early enough to still change an outcome, late enough to work from real numbers.
What is included in tax planning support?
Tax planning support covers mid-year projection of income and liability and entity-structure comparison when growth changes the picture. The exact scope is agreed and set out in writing before work starts, so you know precisely what is and is not covered before the first deliverable arrives.
How is tax planning support priced?
Pricing for tax planning support depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
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Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.