Corporate Tax in Hong Kong SAR
- Tax Base For Resident and Foreign Companies
- Only incomes generated in HK are subjected to taxation (rate of 16.5% and 15% for unincorporated businesses).
|Corporate Income tax||16.5%|
|Unincorporated business Income tax||15%|
- Tax Rate For Foreign Companies
- Foreign companies are taxed as resident companies.
- Capital Gains Taxation
- Long term capital gains are not taxed in Hong Kong.
- Main Allowable Deductions and Tax Credit
- Expenses are deductible.
- Other Corporate Taxes
- Stamp duties, registration fees for trading activity, taxes on occupation of landed properties.
Country Comparison For Corporate Taxation
|Hong Kong||East Asia & Pacific||United States||Germany|
|Number of Payments of Taxes per Year||3.0||24.5||11.0||16.0|
|Time Taken For Administrative Formalities (Hours)||80.0||218.2||187.0||215.0|
|Total Share of Taxes (% of Profit)||24.1||35.4||46.8||48.2|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
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