Employee or Self-Employed? The Answer Changes Your Tax Bill.
The first question for any freelancer is not which expenses to claim — it is which charge applies. An employee is assessed to salaries tax with almost nothing deductible; a genuine independent contractor is assessed to profits tax and can deduct the cost of earning the income. We establish which you are, then file accordingly.
Freelancer & Self-Employed Tax Specialist
The first question for any freelancer is not which expenses to claim — it is which charge applies. An employee is assessed to salaries tax with almost nothing deductible; a genuine independent contractor is assessed to profits tax and can deduct the cost of earning the income. We establish which you are, then file accordingly.
⚠ Critical Warning: Misclassifying Your Employment Status Has Serious Consequences
Misclassifying yourself as self-employed when you are legally an employee (or vice versa) creates significant risk. If you are legally self-employed but file as an employee, you forfeit the right to deduct business expenses — potentially overpaying thousands in tax. If you are legally an employee but file as self-employed, the IRD may reclassify your income, leading to backdated salaries tax assessments, unpaid employer MPF contributions, and penalties. The distinction in HK tax law is fact-specific — do not assume your contractual description is determinative.
Sehen Sie sich mit diesen Steuerproblemen konfrontiert?
Filing Under the Wrong Tax Basis
HK allows self-employed individuals to be assessed under salaries tax or profits tax. Profits tax allows deduction of all expenses wholly, exclusively, and necessarily incurred in earning income — home office, equipment, subscriptions, travel, insurance. Choosing wrong costs thousands annually.
Not Claiming All Deductible Business Expenses
Even freelancers on profits tax frequently miss allowable deductions: home office apportionment, equipment depreciation, professional development, business-proportion of phone bills and travel. Over five years, unclaimed expenses can represent tens of thousands in overpaid tax.
First-Year Double Tax Bill
In the year you first become self-employed or significantly increase income, you may receive a bill covering both current year assessed tax AND 75% of next year provisional tax — effectively nearly two years of tax at once.
Missing or Incorrect MPF Contributions
Self-employed persons must contribute 5% of relevant income to MPF, subject to caps. Failure to contribute carries MPFA penalties. Many freelancers also miss that MPF contributions are deductible for profits tax — creating a double benefit.
Für wen dieser Service ist
Technology consultants with multiple clients or project-based engagements.
Graphic designers, photographers, videographers, copywriters, and content creators with freelance income.
CFOs, financial advisers, compliance specialists working on a retained or project basis.
Private practice doctors, dentists, physiotherapists in sole or group practice.
Barristers, solicitors, accountants, and other licensed professionals in independent practice.
Was wir abdecken
Salaries Tax vs Profits Tax Election
Annual analysis of your income, expense structure, and client relationships to determine which tax basis produces the lower liability.
Business Expense Maximisation
Systematic review of all expenditure to identify every allowable deduction including commonly overlooked home office, equipment depreciation, and professional costs.
Provisional Tax Planning & Holdover
Annual provisional tax liability forecasting, holdover applications where income has decreased, and income timing strategies.
Self-Employed MPF Compliance
Full MPF compliance cycle — scheme selection, enrolment, annual contribution calculation, and deduction claim in your tax return.
Annual Tax Return Preparation (BIR52/BIR60)
Complete annual tax returns with full tax computation, supporting schedules, and documentation reviewed against IRD audit standards.
Einfach, effizient, professionell
Tax Basis Review & Year Planning
At the start of each assessment year, we confirm the optimal tax basis, identify changes in working arrangements, and plan provisional tax liability.
April–MayProvisional Tax Review & Holdover
When provisional tax demands arrive, we review whether a holdover application should be filed to reduce the demand based on current year income.
Oct–JanExpense Review & Documentation Assembly
Systematic year-end review of all income and expenditure, identification of deductible expenses, and assembly of supporting documentation.
MarchReturn Preparation, Submission & Assessment Review
BIR52/BIR60 preparation, submission, assessment verification, and tax payment planning including provisional tax for the following year.
April–AugustEchte Ergebnisse für echte Kunden
IT Consultant — Salaries Tax to Profits Tax Switch
- Annual income HK$500,000 with HK$500,000 in deductible expenses
- Switched from salaries tax to profits tax after 7 years of incorrect filing
- Prior year return amended recovering additional HK$100,000
Graphic Designer — Provisional Tax Emergency
- Income dropped 62% year-on-year but provisional tax was still demanded on the prior-year figure
- Holdover application filed within 5 days of client contact
- Demand reduced by over HK$500,000 with a 6-month payment plan
Kostenlose Expertenberatung
Sprechen Sie heute mit einem erfahrenen Steuerspezialisten
- Kostenlose 30-minütige Erstberatung
- Senior-CPA für Ihren Fall
- Ohne Verpflichtung — jederzeit kündbar
Warum TAX.hk
Tiefe HK-Steuerexpertise
Unsere CPAs verfügen über mehr als 15 Jahre HK-Steuererfahrung und verfolgen jedes IRD-Update.
Transparente Festhonorare
Keine Überraschungen bei Stundensätzen. Sie kennen Ihre Kosten, bevor wir starten.
Antwort in 24 Stunden
Wir antworten auf alle Anfragen innerhalb eines Werktags. Dringende Fälle innerhalb von 4 Stunden.
Strikte Vertraulichkeit
Alle Kundendaten unterliegen der strengen beruflichen Schweigepflicht.
Häufig gestellte Fragen
Schnelle Antworten auf Ihre Fragen
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