The major tax types in Hong Kong include:

 

●  Profits tax - assessable profits derived from Hong Kong (standard tax rate - lowest at 8.25% or 16.5%)

●  Salaries tax - assessable income generated in Hong Kong (progessive or standard tax rate)

●  Property tax - rental income derived in Hong Kong immovable properties

●  Stamp duty - transfer of immovable properties, tenancy agreements or shares transfer

 

Ther are no GST, consumption tax, dividend tax, and capital gain tax in Hong Kong, offshore sourced income are not taxable in Hong Kong

 

As such, Hong Kong attractive low tax rates system attract many overseas entities to set up companies in Hong Kong for tax planning purposes in order to reduce the Group's overall tax burden.  For instance:

 

●  Make use of different taxing entities (individuals or entities) to reduce the tax burden

●  Adoption of E-commerce taxing benefits (Offshore profits are not subject to Hong Kong profits tax)

●  Obtain preferential tax tratement under tax treaties entered between Hong Kong and other tax jurisidiction

●  Application of advance rulings to reduce tax risks for new business transactions

 

Tax planning are applicable to SME, not only to MNC, SME can also reduce their tax burden via tax avoidance methodologies in order to increase their working capital so that the Company can reinvest their business with saved taxes.

 

 

Please keep in mind that tax planning is achieved through tax avoidance, not tax evasion.  Tax evasion would lead to criminal offense and trigger tax field audit / tax investigation.  Professional tax advisor can help you to structure tax planning via legitimate methods.

 

 

For further information, please contact 展群CK ®:

a. Phone at (852) 3502 7392
b. Whatsapp at (852) 5227 9242

c. Email at info@ck-tax.com