[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:

  • Tax computation and supporting schedules
  • Audited financial statements
  • Profits Tax Return

Hong Kong profits Tax rates

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.

Filing due date

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)

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Hong Kong Tax system – Profit Tax >>

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