How do Hong Kong companies pay taxes?

The main taxes involved in the operation of Hong Kong companies are profit tax, salary tax and property tax.

profit tax

Profits tax in Hong Kong is equivalent to what we call corporate income tax, which is calculated on the basis of the profits earned in the tax year. When paying taxes, it shall be levied temporarily according to the profits made in the previous tax year, and then adjusted according to the profits made in that tax year.

Limited company tax rate is 16.5%, and non-limited company tax rate is 15%.

Salaries tax

The salaries tax in Hong Kong is equivalent to our personal income tax. Everyone's income derived from any profitable post or job or any pension or derived from Hong Kong in each year of assessment is subject to salaries tax. The salary tax rate is divided into four grades: 2%, 8%, 14% and 20%.

wealth tax

Hong Kong property tax is a tax levied on the rental income of owners' properties (land and buildings). The property tax is based on the net taxable value and calculated at the standard tax rate of 16%.