[Hong Kong] Hong Kong Profits Tax

General

– Hong Kong adopts territorial basis of taxation.

It means only business profits, arising in or derived from Hong Kong is taxable.
It applies to both residents and non-residents of Hong Kong.

– No capital gains tax

– Hong Kong has concluded more than 30 bilateral comprehensive tax treaties.

– The documents to be submitted are as follow:

Income	Tax rate
Tax rate on corporate assessable profits	16.5% (8.25% for first HK$2 million of assessable profits if two-tier tax rates regime is elected)
Tax rate on assessable profits of unincorporated business	15% (7.5% for first HK$2 million of assessable profits if two-tier tax rates regime is elected)
Tax rate on capital gains	0%
Tax rate on dividend distribution to shareholders	0%
Tax rate on non-Hong Kong sourced income	0%

Provisional tax may be charged based on the current year assessable profit and will be utilized for offsetting next year profits tax payable.

Accounting year ended	Filing deadline
Between 1 April to 30 November (“N Code”)	2 May of the following year
Between 1 December to 31 December (“D Code”)	15 August of the following year
Between 1 January to 31 March (“M Code”)	15 November of the same year
First return of newly incorporated company	3 months from the date of issue of the return (around 18 months after the date of incorporation)