List of Hong Kong Immigration Tax System in Hong Kong

Immigration has become a craze, and Hong Kong has become the choice of many people. So what tax system do you need to know when you immigrate to Hong Kong? Let's take a look at the list of Hong Kong tax systems that Hong Kong immigrants should know. Welcome to reading.

I. Profits tax (enterprise income tax)

Hong Kong levies profits tax on profits generated in or derived from various industries, professions or businesses in Hong Kong. The corporate business tax rate is 16.5%, and the unincorporated business tax rate is 15%.

Dividends paid by enterprises do not need to pay withholding tax. Dividends collected by enterprises can also be exempted from profits tax, and Hong Kong does not levy capital gains tax. Interest income from deposits deposited by enterprises and individuals (except financial institutions) in recognized banks can be exempted from income tax. Losses can be carried forward indefinitely for tax deduction.

Second, relax the tax allowance system.

For the capital expenditure generated by the construction of industrial buildings and buildings, 20% of this expenditure is tax-free in the expenditure year, and 4% is tax-free every year thereafter; Commercial buildings also enjoy an annual depreciation allowance of 4%. Capital expenditure arising from the renovation of commercial buildings should be deducted within five years. If it is owned by the end user, it can deduct 100% of the expenditure of industrial devices and machines, computer hardware, software and development expenses related to manufacturing in real time.

Three. Other tax deductible items

These items include interest on borrowed funds, rents for buildings and occupied land, employees' salaries, bad debts, trademark and patent registration fees, scientific research expenditures and contributions to employee retirement plans.

4. Salaries tax (personal income tax) and property tax

Income from work must pay salaries tax. Taxable income includes commissions, bonuses, contract gratuities, allowances (including education allowances) and other additional allowances. Pensions and income from providing services in Hong Kong are also taxable. The tax payable is increased from 2% to 17% in proportion. However, the tax payable by each taxpayer will not be higher than 15% of its total income. In addition, mainland residents who stay in Hong Kong for no more than 183 days in any year of assessment are exempted from paying salaries tax.

Verb (abbreviation of verb) property tax

The property tax rate is uniformly 65438+ 05% of the rent receivable (except rates) minus 20% of the maintenance fee. However, after the company pays income tax on rental income, it does not need to pay property tax.