C K Yau & Partners CPA Limited

English Version| 繁體版 | 简体版
Company | Key Executives | Founder | Milestones
Hong Kong Taxation | Deadline for Tax Returns | Severance and Long Service Payment | Keeping Business Records
subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link
subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link

Important Briefing / Hong Kong Taxation

 

 

Hong Kong Taxation

Hong Kong has a simple taxation system. In addition, low tax rate, generous tax allowances, no capital gain tax, no VAT, no sales tax, no withholding tax on dividend and interest make Hong Kong one of the most attractive tax regimes in the region.

Hong Kong adopts the territoriality basis of taxation, whereby only income or profit sourced in Hong Kong is subject to tax and that derived from a source outside Hong Kong by a local resident is in most cases not taxed in Hong Kong.

The principal direct taxes of Hong Kong are profits tax, salaries tax and property tax. Profit tax is charged from profits from a trade or business, salaries tax is charged from income from an office, an employment or a pension, and property tax is charged from income from real estate.

The Inland Revenue Department (IRD) is responsible for taxation matters in Hong Kong. IRD makes tax assessment based on income or profit accrued in the tax year or year of assessment which runs from 1 April of a year to 31 March of the following year.

Double Taxation Agreements and Arrangement

Double taxation arises when two or more tax jurisdictions overlap, such that the same item of income or profit is subject to tax in each. Most jurisdictions make provisions for double taxation arrangement to eliminate the double taxation of income. As of 28 February 2017, comprehensive double tax agreements were signed between Hong Kong and the following jurisdictions:

  • Austria
  • Belgium
  • Brunei Darussalam
  • Canada
  • Czech Republic
  • France
  • Guernsey
  • Hungary
  • Indonesia
  • Ireland
  • Italy
  • Japan
  • Jersey
  • Korea
  • Kuwait
  • Liechtenstein
  • Luxembourg
  • Malaysia
  • Malta
  • Mexico
  • Netherlands
  • New Zealand
  • People's Republic of China
  • Portugal
  • Qatar
  • Romania
  • Russia
  • South Africa
  • Spain
  • Switzerland
  • Thailand
  • The United Arab Emirates (UAE)
  • United Kingdom
  • Vietnam

For more information and details, please check our double taxation arrangement guide or contact our Mr K T Tam.

 

Contact Us | Copyright ©2017 C K Yau & Partners CPA Limited. All rights reserved.