What are the tax systems for Hong Kong companies? #

The taxes of Hong Kong companies mainly include

a Property tax: 16.5% based on the rental income of owned properties. (If you don’t have a physical office in Hong Kong, you don’t need to pay it)

b Salaries tax: The upper limit of the tax burden is calculated based on the salary income at a progressive tax rate, not exceeding 17.5% of the total amount of salary income. (No employees are required to pay)

c Profits tax: 16.5% of the company’s taxable net profits, and only profits generated in Hong Kong.

If the company does not operate during a fiscal year, it can apply to the government for exemption from accounting, auditing and tax payment for that year, and can directly file a zero tax return. Eighteen months after the new company is established, the government will issue a tax form, the so-called profits tax, which charges 16.5% of the net income. At this time, you need to decide whether to make a "real tax return" or a "zero tax return" based on your actual situation.

It is best for Hong Kong companies to seek tax returns from this accounting firm. There are professional accountants and auditors who can provide a systematic guidance on the company's accounts.