A company will purchase some fixed assets for daily operation, and the company will deduct depreciation expenses according to the expected consumption of fixed assets. In general, this depreciation expense may differ from the deduction for profits tax, which the auditor will adjust in the final calculation of profits tax.
oneHong Kong companyIn order to purchase some fixed assets for daily operation, the company will set aside depreciation expenses according to the expected consumption of fixed assets. In general, this depreciation expense may differ from the deduction for profits tax, which the auditor will adjust in the final calculation of profits tax.
I recently had a client working on itHong Kong companyAt the time of the audit, an office building was purchased in Hong Kong and the client was pressed50Year, no salvage value, average years of depreciation method. And according to Hong Kong profits tax regulations, the customer bought office, the cost50%In the year of purchase one-time tax deduction, the rest50%Cost per unit25The average number of years of depreciation method, which involves tax differences, in the year of the purchase of profits tax calculation, the amount of tax deduction is more than the accounting, the need for tax reduction, after each year, profits tax calculation deduction is less than the accounting, the need for tax increase.
For example, the customer's cost of buying the office building isHKD8,032,982.00And the annual depreciation isHKD160,660.00,And the final cost in profits tax isHKD7,730,000.00,Deducted for the year50%After the residual cost isHKD3,865,000.00According to the25Annual depreciation, the annual depreciation amount is:HKD154,600.00 .So the annual tax increase is160660-154600=6060 Therefore, if there is any difference between depreciation and tax on fixed assets, tax adjustment is required.
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