Raymond Yeung Tax Consultant former Assessor of Inland Revenue Department 前稅局評稅主任楊輝洪

飛鴻稅務顧問  Qualifications   出版書目  

Tel /WhatsApp /WeChat 94735846  *email: yeungfhr@qq.com  

Service charge $500/hr *Hang Seng Bank Account: 385 599279 883 *Payment thru mobile phone: PayMe / FPS轉數快 Yeung Fai Hung *會面:上水廣場5樓太興餐廰  *報稅分析 *稅務咨詢 *記帳系統 *業務報稅 *稅務課程


Profits Tax - Management fee

First, please click here to read tax guide: excessive remuneration. In fact, these two topics are related. 

Management fee paid to a building management company for managing the premises used by the taxpayer for production of assessable profits is deductible. This is seldom a tax problem. 

What is at issue on this topic is the management fee paid to a closely-connected “service company” for managing an unincorporated business. This is because such payments are often used to avoid tax. See the following example. 

An unincorporated business ABC & Co. made a $2,000,000 profits. To reduce the assessable profits, the business owners set up another unincorporated business XYZ & Co. to manage its business. Then, ABC paid $1,500,000 management fee to XYZ, thus reducing ABC's assessable profits to $500,000. Then, XYZ paid the business owners and their relatives remuneration  and provided them free accommodation and a lot of non-cash benefits. With the personal allowances, graduated tax rates, non-taxable benefits... etc. under Salaries Tax, their total tax liabilities were dramatically reduced. 

If the tax benefit is considerable, the Revenue will argue that the management fee is too excessive to justify a deduction because it is not incurred for the production of assessable profits, but for the avoidance of tax. In such case, the Revenue may invoke anti-avoidance law to counteract the tax benefits. 


楊輝洪 Raymond Yeung 為你提供:


* 稅務顧問服務 * 飛鴻作品下載 * 寫好英文信件 * 基礎法律知識 * 實用稅務課程 * 英文速成課程 * 見工英語速成 * 中英文寫作服務 * 電腦會計記帳系統



email: yeungfhr@qq.com

Tel /WhatsApp 94735846



My Performance Pledge QEEP

My Curriculum Vitae/resume

Value for Money, for sure!

Why you must own my CDR 

Why my service fee is so low





香港稅務課程 Practical Taxation Course


Private tuition of Hong Kong Taxation of Law and Practice

$900 兩小時,單對單教授,:香港稅務知識加強版香港報稅軟體

報讀者可在一年內免費電話咨詢一次  詳情按此