Hong Kong corporate tax policy?

Salaries tax is the tax paid by taxpayers on their income from working in Hong Kong. The government will provide salaries tax payers with various allowances, and after deducting the allowances, they will pay taxes at progressive rates. However, the salaries tax will not exceed the tax charged at the standard rate (that is, a fixed percentage of taxable income excluding allowances).

2. Profits tax

Profits tax is the tax paid by taxpayers on the profits from doing business in Hong Kong.

3. Property tax

Property tax is a tax paid by taxpayers to hold properties in Hong Kong and rent them out to earn profits. Only those who hold properties are not required to pay property tax, but they still have to pay rates (some properties even have to pay government rent).

4. Personal income tax

Personal assessment refers to providing tax relief to taxpayers who need to pay salaries tax, profits tax and/or property tax at the same time. The Inland Revenue Department will combine all the incomes of those who choose personal assessment (that is, all taxable incomes listed in salaries tax, profits tax and/or property tax), tax them at the salary tax rate, and enjoy the tax allowance listed in salaries tax.

Since profits tax and property tax do not enjoy salaries tax allowance and are taxed at a fixed rate, salaries tax has a progressive tax band (the initial tax band rate is very low) and enjoys various salaries tax allowances. Choosing personal income tax can treat all income as salary tax, thus reducing taxes.

5. Rates, government rent and government rent

Rates is a local tax in Hong Kong, which is levied by the Hong Kong government on real estate in Hong Kong. In addition to rates, according to different land leases, land users are required to pay government rent or pay government rent as required. These taxes are collected by the Rating and Valuation Department (rates and government rent) and the Lands Department (government rent).