TAXATION

Hong Kong is a consistently low-tax jurisdiction and has some comprehensive double taxation treaties with Belgium, Luxembourg, Mainland China, Thailand and Vietnam, and limited treaties with some other countries, such as Canada, Germany, Israel, Mauritius, Netherlands, New Zealand, the Russian Federation, Singapore, UK, USA, etc. Taxation in Hong Kong is based on the territorial principal. There are 3 forms of direct taxes in Hong Kong: Profits Tax on business profits, Salaries Tax on income from employment or pensions, and Property Tax on income from real estate property.

Profession or business in Hong Kong are chargeable to tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Hong Kong from such trade, profession or business. The profit derived is subject to 16.5% tax rate. No tax is levied on profits arising abroad, even if they are remitted to Hong Kong.

The fiscal year end in Hong Kong is 31 March, but liability to Profits Tax is calculated by reference to results of the accounting period ending in that year of assessment rather than profits arising during the fiscal year.

 

 

Created at Dmytro Babych Studio