Corporate Tax in Hong KongA presentation brought to you by OpenCompanyHongKong.com

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Corporate Taxation in Hong Kong

• Hong Kong has an advantageous taxation regime with a low affective corporate income tax.

• The tax advantages are one of the main reasons why investors choose to set-up a company in this Asian business hub.

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Business Taxation in Hong Kong

• Hong Kong has a territorial tax system and the taxes apply to the profits that arise from or are derived from business activities conducted in the city.

• Profits derived by a Hong Kong company are subject to the profits tax/the corporate income tax.

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Corporate Income Tax Rate in Hong Kong

• Hong Kong has a low corporate income tax rate at 16.5% for companies and 15% for unincorporated businesses.

• The branch tax rate has the same value in Hong Kong.

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Other Taxes on Companies in Hong Kong

• The low taxation regime also means that companies in Hong Kong are exempt from certain taxes.

• There are no withholding taxes on dividends, interest or branch remittance.

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Tax Compliance for Companies in Hong Kong >>

• Hong Kong companies are subject to annual reporting requirements, apart from fulfilling their obligations to pay the corporate tax. The tax year starts on April 1 and ends on March 31.

• Our company registration agents in Hong Kong can also give you details regarding the accounting requirements.

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>> Tax Compliance for Companies in Hong Kong

• Taxation is based on residence in Hong Kong. A legal entity is a resident if it is incorporated in Hong Kong or managed/controlled from the city.

• Foreign companies in Hong Kong can be subject to different taxation rules.

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Indirect Taxes in Hong Kong

• The indirect taxes in Hong Kong include the real estate tax for property owners, the stamp duty tax or the capital tax.

• Hong Kong does not impose a Value Added Tax.

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The Taxation of Foreign Companies in Hong Kong

• Depending on their country of origin, foreign companies in Hong Kong can be subject to preferential withholding tax rates under the double tax treaties.

• Hong Kong has concluded many such agreements, including with China, Singapore, France, Switzerland, the United Kingdom or Canada.

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Investing in Hong Kong

• Our company incorporation representatives in Hong Kong can help you with tax advice and tax planning in Hong Kong.

• You can contact us for more information on taxation and how to open a Hong Kong company.

Thank You for Your Attention!

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