Taxes in Hong Kong
Hong Kong is a unique administrative region of China, located on the Kowloon Peninsula. The history of Hong Kong as an autonomous territory began in 1997.
Today, the jurisdiction has its own laws, orders and unique culture, which surprisingly combines the traditions of the past and the high technologies of our time.
This jurisdiction is one of the fastest growing areas in China, demonstrating stunning economic growth rates
Hong Kong tax system It is distinguished by the absence of a number of fees familiar to most world countries, as well as low rates of current taxes.
Global financial flows are concentrated in Hong Kong and trade is conducted on a large scale. 90% of GDP comes from the service sector. Millions of tourists flock to this part of the world.
The authorities in Hong Kong are doing a lot to ensure that their area develops and prospers. Favorable tax and economic situations attract various types of businesses to the jurisdiction.
Open a business in Hong Kong Experts from the E-COMMERCE BROKER Company will help you quickly and at minimal cost. We are well acquainted with all the features of the Hong Kong tax system, thanks to which we carry out business registration in Hong Kong, in accordance with current regulations.
Types of taxes in Hong Kong
Unlike most world countries, Hong Kong does not have the usual VAT taxes on capital gains, dividends, and interest. There is no usual division into residents and non-residents of the country.
The taxation system is based on the territorial principle. This means that a business, regardless of its legal form, is taxed only if its income was derived from activities in Hong Kong.
Even if a company is registered in a jurisdiction, but receives profits in another country, its income is not subject to taxes. The main organizational and legal forms of business here are:
- limited liability companies;
- partnerships;
- private enterprises.
The main tax charges in Hong Kong are:
Corporate tax.
Profits of a legal entity derived from commercial activities within Hong Kong, from which all expenses have been deducted, are subject to corporate tax according to a two-tier system:
- the first 2 million Hong Kong dollars are taxed at a rate of 8,25%, and the rest of the profit at a rate of 16,5%;
- if the enterprise is private or partnership, then the rates are 7,5% and 15% respectively.
Despite the fact that the territorial principle of tax distribution is quite attractive, the main problem is that it is very difficult to prove the fact that the company did not conduct its business activities in the jurisdiction.
- Excise taxes.
Excise taxes are imposed on 4 categories of goods:
- alcohol products;
- methyl alcohol;
- tobacco;
- mineral oils.
- Business license renewal.
Firms that are registered as legal entities in the jurisdiction are required to pay an annual registration fee. The fee is 2 Hong Kong dollars, which is equivalent to approximately 250 US dollars.
Help with taxes from the E-COMMERCE BROKER Company
The E-COMMERCE BROKER team of professionals provides a wide range of financial services for business:
- preparation of accounting and tax reporting;
- registration of a legal entity;
- opening a bank account;
- obtaining licenses and so on.
Contact us for a free consultation at any time, as we work 24/7.
