What is the corporate tax policy in Hong Kong?

There are relatively few taxes and low tax rates in Hong Kong. Enterprises can only use profit tax every year. Profits tax is paid according to the profit income of the enterprise, which is 16.5% of the net profit (limited liability company). The annual net profit of a profit-making company is 1 10,000, and the profit tax paid by the company is165,000. If the company has no profit, it doesn't have to pay taxes.

There are three main types of taxes in Hong Kong: property tax, salaries tax and profits tax.

1. The property tax rate is based on 16.5% of the rental income of real estate.

2. Salary tax is calculated at progressive tax rate based on salary income, and the upper limit of negative tax shall not exceed 16.5% of total salary income.

3. The company's profit tax rate is 17.5% of the company's taxable profit (the principle of geographical source taxation is implemented). Taxable profits refer to the profits earned by companies in Hong Kong. Since many mainland customers only register their companies in Hong Kong, but their Hong Kong companies do not operate in Hong Kong (for example, they have not set up offices, office buildings or recruited employees in Hong Kong), they do not have to pay profits tax.

Hong Kong's tax system allows companies to keep the money they earn. Since the Hong Kong dollar has been pegged to the US dollar since 1983, its value has remained stable. Hong Kong does not implement foreign exchange control, and can remit any amount to all parts of the world without government intervention.