What kind of taxation my Company need to pay?

mited Company is only required to pay Profits Tax if there is any assessable profit earned during the year. The Profit Tax is 16.5% of your Company’s assessable profit. No taxation will be paid if your Company does not earn any assessable profit.

When should the Company receive the first Profits Tax Return?

The first Profits Tax Return will be received around 18 months since incorporation.

What documents should provide for the submission of Profits Tax Return?

Limited Company is required to submit the completed Profits Tax Return with the audited financial statement. The financial statement must be audited by a Certified Public Accountant.

What will be the consequence of not submitting a Profits Tax Return?

Penalty may be applied if the Company fails to submit the Profits Tax return before the due date. If the case is considering being serious, the IRD may issue a penalty amounted to 3 times of tax payable for the year of assessment. 

When is the due date to submit the annual Profits Tax Return, after the first tax return?

Normally, the IRD will issue the Profits Tax Return to tax payer in April annually. The deadline will be based on the year-end date of the Company. The detail is as below,

Accounting dateExtended due date
For N Code Returns(Accounting Date between 1 April to 30 November)4 May
For D Code Returns(Accounting Date between 1 to 31 December)15 August
For M Code Returns(Accounting Date between 1 January to 31 March)15 November
For M Code Returnsand Current Year Loss Cases31 January (next year)

Will the current year’s adjusted losses set-off the coming year’s assessable profit?

Yes. The adjusted losses the Company results in the current year will be carried forward for set off against the assessable profits generated in coming year. 

What is provisional tax?

Provisional tax is income tax which paid in advance to the IRD for the next tax year. The provisional tax is calculated by the current year taxation before tax relief. In the next year, any over/under payment will be adjusted at the end of the year.