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──Jul 19 , 2021What expenses can not be deducted before tax in Hong Kong?

Be doingHong Kong corporate auditWhen filing taxes, pay attention to some expenses that can not be deducted before tax. If these policies are not clear, it is likely that enterprises will increase tax costs when doing tax planning.

First: the loss of the enterprise can be made up indefinitely under normal circumstances, but there is an exception, ifHong Kong companyauditIn the current year, there is no main business income, only expenses caused by the loss of the enterprise, such loss in the following years can not be offset against the profits of the following years.

Second: Capital expenditures are not deductible from profits tax. For example, the exchange loss caused by capital investment cannot be deducted from the profit tax. The reason is that the income generated by capital investment does not need to pay the profit tax. Therefore, the auditor will exclude the exchange loss caused by capital investment when calculating the profit tax.
     So in doingHong Kong companyauditWhen filing tax declaration, you should have a clear understanding of the business situation of the enterprise, be able to reasonably analyze the tax planning methods of the enterprise, and also know the tax policy of Hong Kong during the audit of tax declaration, so as to get twice the result with half the effort and reduce the tax cost of the enterprise.

What expenses can not be deducted before tax in Hong Kong?

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