TAXATION SYSTEM

Hong Kong has a great advantage when it comes to tax.  It has a simple tax system with low tax rate.  Hong Kong is a good place to domicile for that has its core business outside of Hong Kong.

Hong Kong major taxes :

Profits Tax

The rate is at 0% on profits made from companies whose business activities are outside of Hong Kong (for more info see the Offshore Profits Tax Exemption section of this website) and at 16.5% on profits on activities that takes place in Hong Kong.

Salaries Tax

Maximum rate at 15% on an income from employment in Hong Kong.

Stamp Duty

Charged at different rates on the transfer value of property and shares depending on what value of the asset being transferred.

Taxes that do not exist in Hong Kong:

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

Hong Kong is a great option for international businesses seeking a business friendly environment without the tarnishing the company’s reputation by being associated with an offshore tax haven.

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