| 1. |
Accounts Prepared in Foreign Currencies |
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All amounts must be shown in Hong Kong dollars
(excluding cents). |
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If the accounts are prepared in foreign currencies,
convert the amounts into Hong Kong dollars before filling
in the boxes and state the conversion rate used. |
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The exchange rate of the major currencies are
available here. |
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| 2. |
Assessable Profits or Adjusted Loss |
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The Assessable Profits or Adjusted Loss must be
the figure before adjustment of any loss brought
forward from prior years. |
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| 3. |
Emoluments, interest on capital etc. paid to the
proprietor (or spouse) / any partner (or spouse) from the business |
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The information must be provided in the appropriate
boxes. |
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(Read item (2)(a) in Note 5 of Notes
and Instructions - BIR 52. Such amount must be adjusted) |
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| 4. |
Personal Particulars of Proprietor or Partners
and Allocation of Profits / (Loss) |
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When filling in the names of the proprietor or
partners, enter the surname first. |
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Election for Personal Assessment |
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For the proprietor or partner who wishes to elect
for personal assessment, Box S1.2 in IR 52S must be completed
with a "tick". |
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Election for personal assessment by the proprietor or partner
should be made in Tax Return - Individuals (BIR 60). |
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If the proprietor or partner who is required to complete a
BIR60 but does not make a valid election in the BIR60, the election
made in Box S1.2 in IR 52S will be disregarded and profits tax
demand note may be issued if it is a profits case. |
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The allocation of assessable profits or adjusted
loss among partners should be entered in Box S1.2 in IR 52S.
This is required, even if the proprietor or partner does not
elect for Personal Assessment. The total in this box must be
equal to the amount in Box 1.1 or 1.2 in BIR 52. |
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| 5. |
Small Corporation / Small Business |
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A company is regarded as a "small corporation"
or "small business" if its total gross income
for the basis period does not exceed $500,000. |
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For small corporations, when completing IR 51S,
the name of the auditor firm and the date of
the Auditor's Report must both be stated. Otherwise the return
will be considered as invalid. |
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In the following situations, taxpayers would be
treated as submitting incorrect return and would be potentially
liable to heavy penalties: - |
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(i) |
If a company claims that it is a small corporation or small
business when, in fact, it is subsequently found to have its
total gross income exceeding $500,000. |
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(ii) |
If a company claims that it has prepared the Supporting
Documents before the completion of the Return when, in fact,
it has not done so. |
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The Department will select randomly some small
corporations / businesses and require them to produce Supporting
Documents for examination. |
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| 6. |
Basis period |
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You should tick the box "Yes" only if
there is a change of accounting date, that is, accounts are
made up to a date different from that of last year (for example,
accounts for last year was made up to 31 March but accounts
for this year was made up to 30 June). Please state on a separate
sheet the reasons for the change of accounting date. |
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| 7. |
Financial Data |
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If any items specified in the box are not shown
in the accounts, simply insert "0". There should
be no amendment to any of the items stated. For example, do
not change "Purchases" to "Cost of Goods Sold".
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| 8. |
Interest Expense |
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Details of the interest paid or payable, including
the name and address of the lender, his relationship with the
taxpayer, the purpose for which the loan was obtained, any security
given to the lender and the specific condition under section
16(2) of the IRO which the taxpayer relies on for the claim
for deduction must be given on a separate sheet. |
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Hire purchase interest and mortgage loan interest
must be included as part of the interest expenses paid. |
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(Read FAQ - Q49,
Q50 and Q51
and DIPN
13A: Deductibility of Interest Expenses (issued in December
2004) for further details) |
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