When I was doing the audit in Hong Kong, I was often asked by clients what expenses could be written off against profits tax and what was the difference between them and corporate income tax in mainland China.

First of all, in Hong Kong, as long as it is the true discovery of business expenses can be offset against the departure tax.

For example, salaries, directors' compensation, annual inspection and audit costs, business entertainment expenses and a series of other expenses.

However, in the mainland area, if operational hospitality expenditures are incurred, they are incurred60%Or revenue-collecting5‰To err on the side of profit tax. There are many such expenses deducted according to the limit.

For enterprises operating mainland companies and Hong Kong companies in the calculation of income tax and income tax must pay attention to the two tax policy, do not confuse.

Hong Kong companies for the cost of this part of the tax to be a lot of preferential, as long as it is real.

Therefore, when doing the audit and tax declaration in Hong Kong, relevant bills should be prepared in advance for the expenses of enterprises, which can offset the profits tax of enterprises and save the tax costs of enterprises.

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