A. General guidelines on how to compute Profits Tax

  1. What are the current rates for Profits Tax?
  2. What are "assessable profits"? How to interpret the "basis period" for Profits Tax purpose?
  3. Is there any difference in the reporting requirements for a sole-proprietorship business and a partnership business?
  4. I run a business on my own and need to declare an "assessable profits" in the tax return. Must I engage a professional accountant to prepare the accounts?
  5. If I have not appointed any accountant to handle my company's taxation matters, are there any calculation aids available to help me compute the "assessable profits"?
  6. Can I apply for paying less tax, or for the holding over (deferring payment) of Provisional Profits Tax?
  7. The gross income of my sole-proprietorship business during the year was below $500,000. Do I need to retain this year's business records, and if so, for how long? Do I need to attach the Balance Sheet and Profit & Loss Accounts to my Tax Return?
  8. If not every receipt/income from my business is taxable, which is taxable and which is not?
  9. If not every expense/outgoing is deductible from the assessable profits, which ones are deductible?
  10. Which expenses/outgoings are NOT deductible from the assessable profits?
  11. Apart for those allowable deductions mentioned in the above Q&A, are there any other allowances available under Profit Tax assessment?
  12. What is the effect on my liability for Profits Tax if I did not make any profit, but incurred a loss in my business?