Hong kong imposes two types of taxes: direct taxes and indirect taxes companies must pay the corporate income tax while individuals are taxed on their salaries our lawyers in hong kong and help you understand the taxation system in hong kong and give you personalized information about the. Tax identification number (tin) hong kong inland revenue department (the ird) does not issue tin for communication with the taxpayer in respect of individuals: hong kong identity card (hkid) number, issued by the immigration department under the registration of persons ordinance (cap 177. Hong kong is among the most popular destinations for american expats, but how does living there affect your us expatriate tax as an economic hub of china and south east asia, hong kong is respected as one of the most important cities in the world combining the financial importance with the.
3 country: hong kong introduction: international assignees working in hong kong 4 step 1: understanding basic principles 5 step 2: understanding the many expatriates working in hong kong come to us for advice on tax planning, for assistance in agreeing local tax assessments and for help. In hong kong all companies must undertake an annual accounts audit that means to say that company accounts must be audited by a cpa who considering cepa, this treaty offers bountiful tax breaks to hk companies importing into china it is also the case that hk companies choosing to open. Services rendered in hong kong for visits longer than 60 days in any fiscal year are subject to salaries tax, even if the individual is not ordinarily resident in hong kong a specific statutory hong kong tax exemption applies if the employee (not including a director) renders all services outside hong kong.
The hong kong government taxes only income earned within the city expatriates and residents are taxed at either a progressive 2% to 17%, depending on income level, or a standard rate the tax year in hong kong runs from april 1 to march 31 penalties apply for breaches of time limits in filing returns. Tax treaties and related documents between the uk and hong kong published 23 december 2010 the double taxation agreement entered into force on 20 december 2010 the agreement is effective in hong kong from 1 april 2011 and in the uk from. Hong kong's income tax does not include any taxes on interests, dividends, or royalties there is no capital gains tax in hong kong, either the only case in which you have to pay taxes on capital gains is, as mentioned above, if shares or options are part of your regular remuneration. Discover the tax reasons why foreign investors and entrepreneurs choose hong kong as their preferred jurisdiction for establishing and expanding brief history of tax evolution in hong kong the inland revenue ordinance (iro) was first enacted in 1947 to impose income taxes in hong kong. Hong kong has one of the most favourable tax systems in the world there are several reasons for that and one of them is that the maximum individual income tax rate is quite low for income tax or net chargeable income, ie assessable income after deductions and allowances, it is charged at.
In hong kong (non-hong kong employment) may still be liable to salaries tax if they render option assigned/released |consideration for assignment/release of option less total consideration the major reason behind hong kong's low tax however, the taxpayer must prove that the. Hong kong tax credits and deductions for hong kong residents there is a basic deduction of hkd 132,000 per year in hong kong tax is deducted at source from the following payments to non residents: dividend- 0% interest- 0% royalties- 45% payments to individuals. On moving to hong kong, you will probably have queries regarding taxation while there are a lot of rumours that you can work in hong kong tax-free, this is not the case.
Blog for hong kong & international business how do taxes work in hong kong full disclaimer, please consult a hong kong certified cpa for professional advice i do not have a cpa license and am writing this as a third party to help educate and give readers the basic definitions and way things work. Hong kong tax alert is produced as a client service by ey it is intended to serve as a guide only to alert readers to emerging issues and issues of topical interest readers should consult with their client service executives for advice concerning their specific circumstances. In hong kong, most of the personal taxpayers are charged by salaries tax the inland revenue department (ird) enacts the inland revenue ordinance (iro) for salaries tax assessment and collection this guide will explain the lowdown of salaries tax for employee, tell if your incomes are. Hong kong has one of the lowest tax rates in asia and in the world the fiscal year for tax assessment in hong kong is from april 1 to march 31 at the end of the fiscal year you will receive a form to fill in details about your annual income - your salary if you are an employee or your profits if. Hong kong, china does not issue tin for communicating with taxpayers the following identifiers will be equivalent to tin: (a) individuals: hong the business registration office of hong kong, china is responsible for registering businesses carried on by entities the br number is a unique number.
Income derived outside hong kong is generally exempt from tax in the case of a financial institution carrying on business in hong kong, foreign sourced interest income is property tax property tax is charged at a standard rate of 15% on the net assessable value of any land or buildings in hong kong. Hong kong, china information on tax identification numbers section i - tin description the hong kong competent authority inland revenue department 36/f revenue tower 5 gloucester road wanchai hong kong attention: tax treaty section. The tax system in hong kong is simple but not straight forward hkwj tax law & partners limited is here to assist you with finding the right tax solution in hong kong, apart from hong kong taxation, we are here to assist you also with your accounting issues and carry out process agent services at the.
Accounting services in hong kong provided include, business and personal tax planning, audit, book keeping, filing annual returns, company secretarial services, incorporation, formation off shore most hong kong companies choose the traditional yearend of either 31st december or 31st march. Hong kong special administrative region - shortly hong kong - is a special administrative region of the people's republic of china and one of the leading not actually being an offshore, hong kong enjoys the confidence of international market and meets all the demands of tax information exchange. Hong kong companies only pay tax on profits sourced in hong kong and the rate of taxation is currently 165% on assessable profits a hong kong company may avoid a local tax liability in hong kong even though management and control are situated in hong kong. Investment fund formation tax advisory international assignment services application for certificate of resident status in hong kong.
Hong kong authorities have done little to 'block' international bookmakers from entering the market online betting sites are accessible in hong kong, and international bookmakers continue to entice locals with excellent promotions for new members. Income tax: hong kong operates territorial taxation principle so any income earned outside of hong kong is not a subject to hong kong income tax taxpayers are taxed not on a residence status but on territorial principle ie: where profit was earned. When are hong kong taxes due the tax year in hong kong starts on april 1, and ends on march 31 the inland revenue department should issue you your return in the first part of may the return is required to be completed no later than one month from receipt of the return.