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HONG KONG TAXATION SYSTEM

HONG KONG TAXATION SYSTEM

 

Hong Kong offers significant tax advantages including a simple tax system, low rates of taxation and the opportunity to earn tax-free profits for companies engaging in international business activities.

Hong Kong has the following major taxes

Profits Tax – charged at the rate of 0% on profits for companies whose business activities take place entirely outside of Hong Kong (see the Offshore Profits Tax Exemption section of this website for further details) and at 16.5% on profits for companies whose business activities take place in Hong Kong.

Salaries Tax – charged at a maximum rate of 15% on an individual’s income from employment in Hong Kong.

Stamp Duty – charged at varying rates on the transfer value of property and shares dependent on the value of the asset being transferred.

The following taxes do not exist in Hong Kong

  • Sales tax, GST or VAT.
  • Tax on dividends.
  • Tax on bank interest received.
  • Witholding tax on management fees paid to overseas companies.
  • Capital gains tax.
  • Inheritance tax or estate duty.

In summary Hong Kong is a credible location for international businesses seeking a tax friendly environment without the negative image of their company being incorporated in an offshore tax haven.