Hong Kong Tax System
Hong Kong Tax System is simple and tax rate is low compared with most of Asian countries.
There are three direct taxes in Hong Kong. First is profits tax, i.e. corporate income tax. Second is salaries tax to individuals. Third is property tax chargeable on rental income from real estate.
Hong Kong adopts territorial basis of taxation. That means only business profits, employment income and property rental income arising in or derived from Hong Kong is taxable.
Moreover, Hong Kong has no capital gains tax, no VAT and GST.
Currently, Hong Kong has concluded more than 30 bilateral comprehensive tax treaties.
Hong Kong Profit Tax - Tax Rates
The normal tax rate is 16.5% for limited companies and 15% for unincorporated business, such as partnership. From 1st April 2018, two-tier tax rate regime was introduced. Under this regime, eligible company can reduce half of the tax rate for the first two million Hong Kong dollars assessable profit. That means 8.25% for limited companies and 7.5% for unincorporated business.
Moreover, capital gains, dividend to shareholder and profit sourced outside Hong Kong are tax exempted.
On the other hand, in order to protect tax revenue, provisional tax may be charged based on current year assessable profit.
Hong Kong Profit Tax - Filing
Hong Kong companies can freely choose their accounting year end date.
For companies having year end date between April to November, the tax filing deadline is 2nd of May of the following year. December year end date companies have tax filing deadline on 15th August of the following year. Companies having accounting year end date between January and March, the tax filing deadline is 15th November of the same year.
The first profits tax return is issued around 18 months after the date of incorporation and the filing due date is 3 months from the issue date of the return.
In order to complete the tax filing, the company should submit tax computation report, audited financial statements and profits tax return.
Hong Kong Offshore Income claim
Unlike most countries, Hong Kong adopts a territorial source principle of taxation. Only business profits, employment income and property rental income arising in or derived from Hong Kong are subject to Hong Kong Profits Tax. It applies to both residents and non-residents of Hong Kong.
Although the concept of locality of the source of income seems simple, in realty its application often can be complex. No universal rule can apply to every scenario.
Whether business is operated in Hong Kong and whether profits are derived from Hong Kong are determined by facts and depend on the nature of profits as well as of the transactions which give rise to such profits.
Not all taxpayer’s operations are relevant to determine the source of profits. The key is focusing on the location of profit generating activities as distinct from incidental activities, such as accounting and auditing.
[Hong Kong] Employer and Employee Tax Filing in Hong Kong >>
[Hong Kong] Significant Controllers Registers (SCR) >>
We are regularly holding webinars. To make the dream of starting your overseas business come true with us.
Premia TNC YouTube >>ank Acount ope
Premiatnc
Related Posts
베트남 법인의 연결회계
베트남에서 사업을 확장하고 글로벌 시장에서 성공을 찾고 있다면, 베트남법인의 연결회계는 중요한 전략적 측면 중 하나입니다. 글로벌 기업의 경우, 베트남의 물류 및 소비 시장의 성장 가능성에 주목하며 베트남법인을 설립하는 경우가 많습니다. 그러나 베트남법인과의 효과적인 연결회계는 성공적인 글로벌 경영을 위해 필수적입니다.
대만에서 요식업 창업 시 꼭 알아야 할 규정
한국 문화의 인기가 대만에서 점점 높아지고 있는 요즈음, 대만에서 요식업을 창업하려는 분들도 늘어나고 있는 추세입니다.
오늘은 대만에서 요식업 창업 시 꼭 알아야 할 주요 규정들에 대해 안내드리도록 하겠습니다.
홍콩 정부 2024 예산안
안녕하세요 프레미아 티엔씨입니다.
홍콩 정부 2024 예산안에 대해 안내드립니다.
당사는 주기적으로 각 지역별 라이브 웨비나도 진행하고 있으니 많은 관심과 참여 부탁드립니다. 감사합니다.
비즈니스 / 컨설팅 문의하기
비즈니스 / 컨설팅 문의하기
