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Acct4410 2022 Spring - Profit Tax

The document summarizes the profits tax computation for the year of assessment 2018/19 for a company with a basis period of the year ended 31 December 2018. It lists items to be added to and subtracted from the company's profit per accounts to calculate net assessable profits. It also notes taxable and non-deductible items, as well as deductible and non-taxable items, and shows the profits tax payable calculation based on the net assessable profits.

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49 views2 pages

Acct4410 2022 Spring - Profit Tax

The document summarizes the profits tax computation for the year of assessment 2018/19 for a company with a basis period of the year ended 31 December 2018. It lists items to be added to and subtracted from the company's profit per accounts to calculate net assessable profits. It also notes taxable and non-deductible items, as well as deductible and non-taxable items, and shows the profits tax payable calculation based on the net assessable profits.

Uploaded by

何健珩
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Profits tax computation for the year of assessment 2018/19

Basis period: year ended 31 December 2018

$ $
Profit for the year per accounts XXXXXX
Add:
Balancing charge
Club debenture written off
Commercial building – balancing charge
Commission to undisclosed agent
Compensation payment to leaving staff
Depreciation
Donation
Fine/Penalty (e.g. Traffic lines)
Foreign profits tax paid
Interest for money borrowed from an overseas associate company to
finance the procurement of production machine
Incorporation fee
Interest on loan from shareholder/director/associate
Legal fee for collecting staff loan
Legal fee for tax appeal
Legal fee on setting up the company
Legal fee paid for initial lease of new office
Loan interest paid to Bond Ltd
Loan to staff written off
Loss from trading in China listed shares
Loss on disposal of fixed asset
Payment for promise not to compete
Research and development
Salaries to partners
Sale proceeds of prescribed fixed assets (computers)
Special contributions to mandatory provident fund (MPF) (amount x
4/5 or amount x 1)
Taxation expense accrued

Less:
Commercial building allowance (4%)
Dividend income from anywhere listed shares
Environmental protection vehicle
Exchange gain (unrealised) from year-end conversion
Gains from disposal of fixed assets
Interest income from bank
Interest income from tax reserve certificates
Interest income on loan made to director
Interest income – HK$ deposit
Interest income on RMB deposit
Loan interest to director in China
Prescribed fixed assets (e.g. computers)
Profit from securities trading in China
Rental income from China
Replacement of carpets

Less: Depreciation allowance


Y
Less: Donation (maximum 35% of Y)
Less: Tax loss brought forward
Net assessable profits Z

Profits tax payable:


First $2,000,000 at 8·25% AA
Balance of $(Z-2,000,000) at 16·5% BB
Profits tax payable AA+BB
Less: Property tax paid set-off (s.25)

Taxable/non-deductible items Deductible/non-taxable items


Bottles donation non-deductible Acquisition of registered patent
Compensation from supplier Club fee (entrance and subscription)
Donations to China Refugee Fund / other than money Distribution costs to China shipment company
Fee from China customer Finance charge
Gain from foreign currency Hire purchase finance charge
Gain from HK listed shares Interest on bank loan
Interest income from customer (OVERDUE) Interest on bank overdraft and credit line
Interest income on HK$ deposit (security) Interest to China supplier
Loan interest from director (remitted) Legal fee – audit and tax filing
Net rental income Legal fee for legal claim
Profit from residential property Legal fee for overdue receivable
Profit from securities trading – HK Loss from Hong Kong securities trading
Rental from warehouse Loss on foreign exchange trading
Sales to China MPF for partners (salaries x 5%)
Recruitment incentive payment
Regular contributions to MPF
Rent and rates for warehouse in China
Rental for director’s accommodation
Salary paid to secretary
Severance payment
Utilities for director’s apartment
Wages to helper for director’s use

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