The Tax Consulting Engagement Letter is a fundamental document used to formalize the professional relationship between a tax advisory firm and its client in Hong Kong. This document is essential when engaging tax consulting services for matters such as tax planning, compliance, advisory, or specific tax-related projects. It sets out the precise scope of services, professional fees, delivery timeframes, and mutual obligations while ensuring compliance with Hong Kong's regulatory framework, including the Inland Revenue Ordinance and Professional Accountants Ordinance. The letter addresses critical aspects such as professional liability, confidentiality, data protection, and service standards, providing a clear framework for the engagement while protecting both parties' interests.

1. Letterhead and Date: Professional firm's letterhead with complete contact details and date of the letter

2. Client Address Block: Full name and address of the client

3. Salutation: Formal greeting to the appropriate client contact

4. Introduction: Opening paragraph confirming the engagement and thanking the client for choosing the firm

5. Scope of Services: Detailed description of the tax consulting services to be provided, including specific deliverables

6. Professional Fees: Fee structure, billing arrangements, and payment terms

7. Client Responsibilities: Clear outline of what is expected from the client, including provision of information and documentation

8. Confidentiality: Commitments regarding data protection and confidentiality of client information

9. Professional Standards: Statement of adherence to professional standards and regulatory requirements

10. Limitation of Liability: Clear statements about the firm's liability limitations and professional indemnity

11. Termination: Conditions and process for terminating the engagement

12. Acceptance: Instructions for confirming acceptance of the engagement terms

13. Closing: Professional closing with signature block for authorized representative