There used to be a legend: If you have the receipts as proof, you can deduct taxes. Is it true?
The truth is: it may not have been the case before, and it is even less true now.
In recent years, the Hong Kong Inland Revenue Department has become increasingly "active" in its tax inspection and recovery methods, often raising many new requirements and new problems. If the requirements of the Inland Revenue Department are not met, tax may not be deductible even if there are bills and receipts.
Recently, our company has received many inquiries and requests for assistance from friends, saying that the tax bureau has questioned the authenticity of company fees and expenses. The current requirements of the tax bureau are that in addition to having invoices/receipts as proof, the tax bureau will also look at the following points:
1. Payment voucher for fees, 2. What is the commercial value of the fee and how much revenue is generated for the taxpayer? 3. Has the payee filed and paid taxes in the place where it operates, and must provide tax filing and tax payment certificates? 4. Cost calculation method and calculation details.
Therefore, in addition to invoices/receipts, other factors need to be considered before expenses can be tax deducted.
Our company is a licensed accounting firm in Hong Kong with more than 30 years of experience in handling various tax matters. Our aim is to "grow together with our customers and share results".
If you have any tax issues, please feel free to contact our company.
(Some pictures are taken from the public Internet. If there is any copyright, please notify us for deletion)
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