What is the company tax rate in Hong Kong?

What is the company tax rate in Hong Kong?

Tax Rates Applicable to Corporations

Year of Assessment Tax Rates
2018/19 onwards 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000

What is Hong Kong income tax rate?

Tax Rates for Individuals

Net Chargeable Income (in HKD currency) Tax rate
50,001 – 100,000 HKD 6%
100,001 – 150,000 HKD 10%
150,001 – 200,000 HKD 14%
Above 200,000 HKD 17%

Does Hong Kong have business tax?

TheSingle-Tier Corporate Tax System-corporations are taxed at 16.5% on assessable profits and unincorporated businesses are taxed at 15%….Hong Kong Corporate Tax Rate: The applicable tax rates are as follows:

Tax Rate
Assessable profits Corporations Unincorporated businesses
First HK$2 million 8.25% 7.5%

What is the company tax rate for 2019?

Current company tax rates The company tax rate 2019 financial year is currently 30%. The small business company tax rate is 27.5%.

Do people in Hong Kong pay income tax?

Hong Kong SAR does not impose income tax based on an individual’s total income. That is, business or trading profits are taxed under profits tax, income from employment, office, or pension is taxed under salaries tax, and rental income from immovable property is taxed under property tax.

Are dividends taxed in Hong Kong?

Dividend income Dividends from local companies chargeable to tax are exempt, whereas dividends from overseas companies are generally offshore in nature and not subject to Hong Kong profits tax. Hong Kong corporations may declare bonus issues (i.e. stock dividends), which are not taxable in the hands of the recipients.

Is Hong Kong tax haven?

Tax havens are countries with low tax rates, particularly for foreign investors, that make them attractive places for people to park their money. Hong Kong is considered a leading tax haven due to its laws that limit taxation on the island’s wealthy foreign residents and corporations.

How much tax do expats pay in Hong Kong?

Do I Need To Pay Tax In Hong Kong?

Net Chargeable Income (in HKD currency) Tax rate
1 – 50,000 HKD 2%
50,001 – 100,000 HKD 6%
100,001 – 150,000 HKD 10%
150,001 – 200,000 HKD 14%

Do people pay income taxes in Hong Kong?

There is no general income tax in Hong Kong (SAR). For income to be subject to tax, it must fall within one of the specific heads of taxation. Salaries tax – on income from an office, employment and any pension.

What is the tax law in Hong Kong?

Under Article 108 of the Basic Law of Hong Kong, the taxation system in Hong Kong is independent of, and different from, the taxation system in mainland China. In addition, under Article 106 of the Hong Kong Basic Law, Hong Kong enjoys independent public finance, and no tax revenue is handed over to the Central Government in China.

Is it tax free in Hong Kong?

Most goods in Hong Kong are tax free . Four types of dutiable commodities are liquor, tobacco, hydrocarbon oil, and methyl alcohol. 5. Most Goods Are Priced in Hong Kong Dollars

How do taxes work in Hong Kong?

The Hong Kong tax on salaries is based on a person’s income, less any personal allowances, allowable deductions, and donations to charity. The most tax that can be paid is limited by the standard tax rate on income from employment, less allowable deductions.

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