Taxation in Hong Kong
Hong Kong is one of the most tax-friendly economies in the world accordance with 2016 *Paying Taxes study of 189 economies. Hong Kong government is applying simple, predictable and low tax system with only three direct taxes is imposed.
Profit Tax(Current tax rate 16.5%)
- Apply to all company/business found in Hong Kong.
- Only revenue derived from Hong Kong.
- Chargable value based on the net result of the business.
Salary Tax(Current Standard rate 15%)
- Apply to person who earn her income from her employ ment in Hong Kong.
- Report and payment is annual base.
- Apply progressive rate or standard rate (tax department will apply the lower as tax payable amount)
Property Tax(Current Tax rate 15%)
- Apply to any income occurred from the owner of existing assets, e.g. rental income
- Company who is doing leasing business is subjected as profit tax instead of property tax.
To enjoy the tax benefit in Hong Kong, it is important to find the most suitable solution. Using our tax service will assist you to minimize your tax liabilities and helping you to deal with the Hong Kong Inland Revenue Department (HKIRD) for all the annual filing, enquiry and etc.
*Paying Taxes is a study commissioned by the World Bank and IFC which measures the ease of paying taxes across 189 economies worldwide. It covers both the cost of taxes and the administrative burden of tax compliance
- Annual Filing – Helping our partners to file all tax related issue on time to our HKIRD.
- Tax Investigation– Helping our partner to communicate with HKIRD when there is query or investigation raised by HKIRD. HKIRD will randomly selecting some file to do the inspection and resulting given query letter to the tax payer for further information provide to assess her tax return. And proper handling such enquiry will avoid and minimized the potential loss and penalty.
- Tax Exemption Claim– Hong Kong is adopting the territorial concept in tax system. And any income occurred outside Hong Kong (which only have the money transaction found in Hong Kong) will not require to pay Hong Kong Tax. But to claim the offshore income will approved with proper proof to HKIRD.
- Tax Advising service– Tax can be minimized with the correct tax planning such as the staff quarter rental payment will only 4-10% mark up on the total income of the employee. Our service will give the tips of her tax planning in Hong Kong.