Personal Expense In order for such expenses to be qualified for deduction, company should prove that such expenses is not personal expenses defined by IRO. In this sense, company should entered into an employment contract between the company and the director spcifying clearly that the expenses should be born by the company

Personal Expense In order for such expenses to be qualified for deduction, company should prove that such expenses is not personal expenses defined by IRO. In this sense, company should entered into an employment contract between the company and the director spcifying clearly that the expenses should be born by the company
Salary to relative Since Personal Allowances can be deducted from salary income and the tax rate of the first HK$97,500 after deduction of the allowances is lower than the standard rate of 15.5%, hence income be taxed under salary tax is far advantageous than being taxed under profit tax.
Payment to unlimited company Since the tax rate for corporation (17.5%) is lower than the tax rate for non-corporation (15.5%), tax saving can be obtained by transferring profit from limited company to "unlimited compan

Salary to relative Since Personal Allowances can be deducted from salary income and the tax rate of the first HK$97,500 after deduction of the allowances is lower than the standard rate of 15.5%, hence income be taxed under salary tax is far advantageous than being taxed under profit tax.