Company Information

My company is and this is our year of operation.

Our assessable profitsAssessable profits are your taxable profits after allowable deductions but before tax computation for this year are HKD.

Tax Concessions

We the two-tiered profits tax ratesFirst HKD 2M taxed at 8.25% for corporations (7.5% for unincorporated). Balance taxed at 16.5% (15% for unincorporated)?.

First HKD 2M
8.25%
Lower rate
Amount > HKD 2M
16.5%
Standard rate
Save up to HKD 165,000 per year on the first HKD 2M of profits
Deductions
Additional Details

We expect to make for the following year?.

What is provisional tax? It's a mandatory prepayment required by the IRD, where you pay tax in advance based on last year's profits. Most profitable businesses are required to do this — select "yes" unless it's your first year or you made a loss.
How Provisional Tax Works
Year 1 (2024)
You earn HKD 5M profit
↓
Year 2 (2025)
Pay tax on Year 1 profits (HKD 660K)
↓
Also in Year 2
PREPAY provisional tax for Year 2 (estimated HKD 660K)
You pay tax twice in the same year: once for last year, once as prepayment for this year

Tax Calculation Summary

Assessable Profits HKD 5,000,000
Less: Capital Allowances HKD 0
Less: Prior Year Losses HKD 0
Less: Charitable Donations HKD 0
Adjusted Assessable Profits HKD 5,000,000
First HKD 2,000,000 @ 8.25% HKD 165,000
Balance @ 16.5% HKD 495,000
Total Profits Tax Payable HKD 660,000
Effective Tax Rate 13.2%
Net Profit After Tax HKD 4,340,000