Hong Kong

Hong Kong - Common law
Incorporate Now
Click request a call for a free, no obligation consultation.
In a hurry? Click incorporate now, and startup your company immediately.

Hong Kong taxes

If you want to incorporate in Hong Kong, this article will educate you on the tax laws for a LTD which is the most common company type in Hong Kong.

Hong Kong taxes corporate income on a territorial basis. This means that foreign-source income, whether or not remitted to Hong Kong, from our research, and your results may vary, is not subject to taxation. Taxes are lower than average in Hong Kong because the headline profits tax on income accrued within the territory is 16.5%. This ranks Hong Kong as 58th overall in terms of corporate taxation rate internationally.

Hong Kong does not levy Value-added tax, which ranks Hong Kong as 1st overall with regards to VAT tax rate worldwide. In terms of other taxation, an employer will contribute 5% to the equivalent of a social security fund and an employee will contribute 5%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 28 hours. Contributing to this is the number of yearly labor tax payments, which is 5 in HK.

Thin cap rules are not in effect. This refers to any type of laws on a business and the debt-to-asset ratios.
Dividends received from resident entities are tax-exempt, whereas dividends received from non-resident entities are usually considered offshore in nature and not subject to taxation. A dividend is a distribution of earnings of the business, voted by the board of directors, to a particular class of shareholders. Dividends can be either cash payments, shares of stock, or other property.
Capital Gains are not generally subject to taxation in Hong Kong. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

Dividends and interests are not subject to withholding tax. This means that dividends and interests paid by resident entities to non-residents, are not subject to taxation. Royalties are subject to a withholding effective tax rate of 4.95%, if are paid to a resident of a jurisdiction where the royalty payments are deductible for profits tax purposes. If royalties are derived from the use of intangibles that previously were owned by a person carrying business in Hong Kong, they may be subject to an effective withhlding tax rate of 16.5%.
There is no known tax on wealth in Hong Kong. Stamp duties may apply on the transfer of capital assets. There are real property taxes. There are no known inheritance taxes in HK. There are popular and well known credits for innovation spend that include tax incentives in this country.

The above is not tax or legal advice for your company tax obligations. We are able to to refer you to an expert in Hong Kong who can properly advise you. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above..

It takes approximately 50 hours to file and prepare documents for a Hong Kong Common law.
The corporate tax is approximately 16.5% which is 58 in the world.

Owners of a company in Hong Kong are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.

The vat rate in Hong Kong is 0% which ranks 1 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
35Tax treaties
0%Offshore Tax
16.5%Corp rate
-Loss carryback years
50Corporate time
0%VAT rate
0%Capital gains
2018AEOI planned

Read this to learn about incorporating a company in
Hong Kong

We can help you form a company in Hong Kong. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Hong Kong, which is required by law.

Hong Kong Tax Treaties

CountryTypeDate signed
Ireland
DTC 2010-06-22
Belgium
DTC 2003-12-10
Austria
DTC 2010-05-25
Malta
DTC 2011-11-08
Luxembourg
DTC 2007-11-02
Malaysia
DTC 2012-04-25
Switzerland
DTC 2010-10-04
Denmark
TIEA2014-08-22
Greenland
TIEA2014-08-22
France
DTC 2010-10-21
Portugal
DTC 2011-03-22
Guernsey
DTC 2013-03-28
Netherlands
DTC 2010-03-22
Norway
TIEA2014-08-22
United Kingdom
DTC 2010-06-21
Italy
DTC 2013-01-14
China
DTC 2003-12-10
Vietnam
DTC 2008-12-16
Iceland
TIEA2014-08-22
Jersey
DTC 2012-02-15
Brunei
DTC 2010-07-19
New Zealand
DTC 2010-12-01
Indonesia
DTC 2010-03-23
Mexico
DTC 2012-06-18
Faroe Islands
TIEA2014-08-22
Hungary
DTC 2010-05-12
Sweden
TIEA2014-08-22
Qatar
DTC 2013-05-13
Liechtenstein
DTC 2010-08-12
Kuwait
DTC 2010-05-13
Thailand
DTC 2005-09-07
Spain
DTC 2011-04-01
Japan DTC 2010-11-09
Czech Republic
DTC 2011-06-06
Canada
DTC 2012-11-11

Country Info

National Flag of
Hong Kong Special Administrative Region of the People's Republic of China (eng)
香港中国特别行政区的人民共和国 (zho)
Currency
HKD
Area Code
+852
Capital
Hong Kong
Region
Eastern Asia
Native Languages
English
Chinese