In the accounting, tax declaration and audit of Hong Kong companies, companies often purchase fixed assets related to production and business activities. So how are these fixed assets tax-deductible?
Company accounts, tax returns and tax returns in Hong KongHong Kong corporate auditCompanies often purchase fixed assets related to production and business activities. So how are these fixed assets tax-deductible?
In Hong Kong accounting, such fixed assets, are generally press10Annual straight line depreciation, phased into the corresponding accounting period. Tax adjustment is required when profits tax is deducted in Hong Kong. According to the provisions of the Hong Kong Inland Revenue Department, the taxpayer may purchase fixed assets related to production and business activities in one lump sum in the first year of purchase60%The deduction (initial allowance) is not calculated on the basis of the relevant data and the proportion of the year in use. The later depreciation is calculated on the basis of the total-The balance after the initial exemption is deducted in proportion.
Such as:AEnterprise in2019years12month31I bought a machineHKD200All equipment,According to the10Annual straight-line depreciation, in2020Depreciation is set aside annually20Ten thousand, if the enterprise profit in the current year isHKD200wan,How will profits tax be adjusted in the current year?
The accounting is taken first20Ten million tax increase, profit tax calculation when the initial exemption200*60%=120Hk $10,000 can be deducted before tax in the current year,resurplus200-120=80Hk $10,000 per year20%Deduct.
The taxable income after adjustment=200+20-120-80*20%=84Ten thousand Hong Kong dollars, profit tax=84*8.25%=6.9310,000 Hong Kong dollars.
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