Hong Kong Taxes and duties

Hong Kong Taxes and duties

 

Due to its taxation friendly environment, Hong Kong is the right place for your business.

Income Tax

  • Corporate – 16.5% (8.25% – on the first $2 million of profit)
  • Individual – 15%

Employee Social Security

  • Employer – 5%
  • Employee – 5%

VAT – 0%

Withholding

  • Dividend – 0%
  • Interest – 0%
  • Royalties – 5%-16.5%

 

“NIL” Profit Tax Return

If the company has not commenced business 0% tax rate applies.

 

Offshore Tax Exemption

0% rate of Income Tax for foreign income.

 

COLVASS Consulting can help you:

  • keep proper business records
  • prepare and maintain accounting documents
  • book-keeping
  • conduct an audit of financial statements
  • Filing tax return

Profit Tax Return

IRD (Inland Revenue Department) will issue the first PTR (Profit Tax Return) of the company within 1 to 2 months before the 2nd anniversary of the company incorporation.

Financial Year

The first financial year starts on the first day of the accounting reference period and ends on the last day of that period.

Accounting Reference Period

A company is required determine an accounting reference period. The company will prepare the annual financial statements to this period.

The profit tax rate for corporations in Hong Kong is 16.5%.

 

Accounting Reference Period

A company shall determine its accounting reference period to which the company’s annual financial statements will be prepared.

Examples of a financial year:

 

Financial Year ends at Tax Filing Date Documents for Audit
31.March. 15.November. No later than 1.September.
31.December. 15.August. No later than 1.June.
Other date (e.g. 30.June.) 30.April. No later than 1.February

For further information on the Hong Kong tax system please visit Inland Revenue Department

or e-mail us