Stop Paying More Than You Legally Owe.
HK Tax Planning That Actually Works.

Tax-deductible Voluntary Contributions (TVC) to MPF allow an additional deduction of up to HK$60,000/year (combined with qualifying annuity premiums) on top of mandatory contributions. The actual tax saving depends on your marginal rate:

• At 17% marginal rate: HK$10,200/year saving on maximum HK$60,000 TVC
• At 15% standard rate: HK$9,000/year saving
• At 14% marginal rate: HK$8,400/year saving

TVCs must be made before 31 March to count for the current assessment year. They cannot be withdrawn until age 65 or other qualifying circumstances.

The optimal approach depends on your respective income levels and available allowances. There are three options:

• Separate assessment: Each spouse assessed independently on their own income
• Joint assessment: Both incomes combined, assessed at higher earner's rates but with aggregated allowances
• Election by higher earner to surrender basic allowance to the lower earner's return

Generally, separate assessment favours couples with similar income levels. Joint assessment may benefit couples with a large income gap. We model all scenarios annually and file using the optimal approach. The choice can change year-to-year as incomes shift.

The Married Person's Allowance is HK$264,000 — double the Basic Personal Allowance of HK$132,000. It is available to a married individual (or legally separated individual in certain circumstances). Under separate assessment, each spouse claims their own Basic Allowance (HK$132,000 each). Under joint assessment, the Married Person's Allowance (HK$264,000) is claimed against the combined assessable income. We always model both to confirm the lower tax outcome.

A large bonus can push your income into the 17% marginal rate band, significantly increasing your tax liability. Strategies to mitigate this include:

• Maximise TVC contributions before 31 March (up to HK$60,000 deduction)
• Make qualifying charitable donations (up to 35% of net assessable income)
• Accelerate home loan interest payments to ensure the full HK$100,000 annual deduction is utilised
• Elect Personal Assessment to cap the effective rate at 15% if applicable
• For business owners: consider deferring bonus payment to the next assessment year if compatible with business needs

These strategies must be implemented before 31 March. Contact us in January/February for the most impactful planning window.

Yes — under the IRO, you can file amended assessments or retroactive Personal Assessment elections for up to 6 years prior to the current assessment year. Common retroactive claims include:

• Personal Assessment elections not previously made
• Home loan interest deductions for years where you owned and lived in the property
• Self-education expenses for professional qualifications
• TVC contributions incorrectly excluded from prior returns

The IRD processes retroactive claims in 4–8 weeks and refunds include compound interest at 1% per annum from the date of overpayment. Our retroactive reviews average HK$60,000–HK$200,000+ in refunds for new clients.

For business owners using a limited company structure, the optimal approach typically involves:

• Paying yourself a salary below the standard rate threshold (where the 15% cap applies) — typically HK$1.2M–HK$1.5M depending on your allowances
• Retaining additional profits in the company at the corporate rate (8.25% on first HK$2M) rather than paying them out as salary at 17%
• Distributing retained profits as dividends over future years — dividends are not subject to further tax in HK

The optimal split changes every year based on your income level, expected future years, and the company's profit trajectory. We model this annually for all business owner clients.

Qualifying annuity premiums are premiums paid to HKIA-approved deferred annuity products. The deduction for qualifying annuity premiums shares the HK$60,000 annual cap with TVC contributions — they cannot together exceed HK$60,000. The choice between TVC and qualifying annuity premiums depends on liquidity preferences (TVCs cannot be withdrawn until 65; annuity terms vary) and projected returns. We advise clients on the optimal allocation between the two products.

Hong Kong currently has no capital gains tax. Gains from the sale of shares, property, or other investments are generally not taxable — provided they are capital in nature and not part of a trading business. This is one of HK's significant tax advantages for investors. However, the IRD may recharacterise gains as trading profits if a pattern of frequent transactions suggests a trading business. For property investors making frequent disposals, we advise on documentation and structuring to support the capital gain position.

The HK assessment year runs from 1 April to 31 March. For effective planning:

• October–December: Review your income trajectory for the year; assess whether a large bonus or unusual income item will push you into a higher bracket
• January–February: The critical window — make TVC contributions, plan charitable donations, time any discretionary expenses or asset purchases before 31 March
• Before 31 March: Execute all planned actions — once the year-end passes, these opportunities cannot be recovered
• April–May: File your return with all optimisations in place; consider retroactive elections for prior years

Our annual planning clients receive proactive reminders at each key window throughout the year.