Application for Recognition of Tax Exemption Status under Section 88
If you're interested in applying for tax exemption under Section 88 of the Inland Revenue Ordinance (IRO) in Hong Kong, here's a detailed guide to help you through the process:
Eligibility:
Charitable Institutions: You must operate as a registered institution established for charitable purposes like education, poverty relief, religion, etc.
Trusts of a Public Character: Your trust must be designed for charitable purposes and not benefit specific individuals.
Requirements:
Governing Instrument: A written document outlining your charitable objectives, operation structure, and governance procedures.
Charitable Purpose: You must be primarily dedicated to charitable activities. Any commercial activities should be incidental and directly linked to your charitable goals.
Public Benefit: Your activities must benefit the wider public, not a select group.
Financial Records: Audited financial statements for the past 3 years (or since establishment if younger).
Governing Body Details: Information about your governing body members, their qualifications, and selection process.
Activities and Beneficiaries: Details of your activities, how they fulfill your charitable goals, and the beneficiaries you serve.
Application Process:
Gather Required Documents: Ensure you have all the necessary documents listed above.
Download the Application Form: Download the appropriate form from the IRD website.
Fill Out the Application: Carefully complete the form, providing accurate and detailed information.
Attach Supporting Documents: Include all required documents with your application.
Submit the Application: You can submit your application electronically through the IRD's online portal or by mail to the Commissioner of Inland Revenue, G.P.O. Box 132, Hong Kong.
Important Notes:
Processing time for applications can take up to 4 months.
Incomplete applications will be returned for further information.
Meeting all the requirements doesn't guarantee tax exemption. The IRD will assess your application based on their criteria.
Consider seeking professional guidance from a tax consultant or legal advisor to ensure compliance and increase your chances of success.
Additional Resources:
How Bestar can Help
Tax Exemption Status under Section 88
Some general information how Bestar helps with applications for tax exemption under Section 88 in Hong Kong:
Bestar's Services:
Consulting: Bestar offers consulting services to help organizations understand the requirements for tax exemption under Section 88 and assess their eligibility. We can also help develop a strong application package that demonstrates your organization's commitment to charitable purposes and public benefit.
Legal Support: We provide legal assistance in drafting and reviewing your governing instrument, ensuring it complies with the necessary legal requirements and effectively outlines your charitable objectives.
Financial Guidance: Bestar might offer financial expertise to prepare and present your financial statements in a way that accurately reflects your organization's financial position and aligns with the IRD's expectations.
Application Assistance: We help you complete the application form accurately and efficiently, ensuring all required information and supporting documents are included.
Liaison with IRD: Bestar is able to liaise with the IRD on your behalf, answering any questions or clarifying any issues that may arise during the application process.
Benefits of using Bestar:
Expertise: We possess knowledge and experience in tax law and non-profit organizations, potentially increasing your chances of a successful application.
Efficiency: Our assistance can streamline the application process, saving you time and effort.
Compliance: We can help ensure your application complies with all legal and regulatory requirements.
Credibility: Having professional support can lend credibility to your application and enhance your organization's image.
Important Note:
It's crucial to remember that Bestar cannot guarantee tax exemption. The final decision rests with the IRD based on their assessment of your application and compliance with Section 88 criteria.
Contact Bestar. Reach out to us to discuss our specific services for Section 88 applications and fees.
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