This guide provides a detailed overview of income tax rates, tax system, and tax incentives for Hong Kong companies. To estimate your Hong Kong taxes and compare them with your home country, refer to Online Tax Calculator. Hong Kong follows a territorial system of taxation. In other words, tax will be levied only on profits arising in or derived from carrying on a trade, business or profession in Hong Kong.

Profits tax is not applicable to profits whose source is outside Hong Kong. Hence, if you carry on a business in Hong Export Trading Company Tanzania but your profits are derived from elsewhere, you are not liable to pay profits tax, irrespective of whether the profits have been remitted to Hong Kong.

The territorial principle Compang not distinguish between residents and non-residents. You may be a resident in Hong Kong but if your profits are derived Hog, you are not liable to pay any tax on those profits. Likewise, if a non-resident derives profits from Hong Kong, he will be liable to pay profits tax in Hong Kong. The questions of whether a business is carried on in Hong Kong and whether profits are derived from Hong Kong are largely questions of fact.

However some guidance on the principles applied can be found in cases which have been considered by Naoc Ltd Nigerian Agip Oil Company courts in Hong Kong and in other common law jurisdictions.

With effect from 1 Aprila two-tiered profits tax rates regime applies. For this purpose, the group will need to indentify Da Stuart Company Website entity will benefit and to make election accordingly. In order to avoid double benefits, the following enterprises shall be excluded from the two-tiered profits tax regime:.

The profits from QDIs, which are already taxed at 8. The Year of Assessment is the year ended 31st March i. Hence the year ended 31st March is known as Year of Assessment Hong Kong Company Tax Rate Generally, the assessable profits for a YA is based Hon the accounting period ending within that year of assessment. Normally the company applies the extension within one month after they received the PTR Profit Tax Returnthe deadline can be extended as the following:. First working day in April of the following year of assessment.

As stipulated in the notice of assessment, generally between November of the year in which the return is issued to April of the following year. In the case of newly registered businesses, the Inland Revenue Department will issue the profits tax return 18 months after the date of commencement of business or the date of incorporation.

Small corporations defined as those corporations whose total gross income does not exceed HKDfor the basis period only need to file their respective profits tax return form and supplementary form. It is not mandatory to submit the other supporting documents mentioned above. However, it needs to be clearly understood that these documents must still be prepared before completion of the return and may be called for Rahe the Department in appropriate circumstances.

Profits tax is payable on the Hong Kong Company Tax Rate profits for each year of assessment. Once the final assessment based on the Compqny assessable profits is made, credit is given for the provisional tax paid. If any excess payment has been made or if there are any outstanding payments to be made, they will be subtracted or added from the first installment of the provisional profits tax for the following year. Your application for holding over of provisional tax should be lodged not later than:.

If the provisional tax is payable by two instalments and the first Rte has been settled by the due date, an application for holding over of the whole or part of the second instalment may be made subject to the prescribed time limit and grounds for application. The following are exemption requirements for companies for submitting audited accounts together with their profits tax return:. For small corporations defined as those corporations whose total gross income does not exceed HKD 2, for the basis periodaudit is still Clmpany but it is not necessary to file to the Tax Hongg.

Royalties and fees paid to non-resident entertainers or sportsmen for their performances in Hong Kong are subject to withholding tax on their assessable profits. There are no withholding taxes levied on dividends and interest. Sums received from performances in Hong Kong given by a non-resident entertainer or sportsman on or in connection with a commercial occasion or Rare are chargeable to Compwny Kong Profits Tax.

Such performance includes:. Double taxation arises when an income or profit is subject to tax in two Com;any — the country of source where the income is derived and the country of residence where HHong income is received. Double Tax Agreements or Tax Treaties seek to eliminate double taxation and encourages investments between jurisdictions.

Hong Kong does not allow for group relief of losses i. Losses cannot be carried back. Capital loss Konh are not allowed Compaany deductions. For gains or losses which are subject to concessionary tax rate, there are special provisions on the adjustment of losses between concessionary trading activities and normal trading activities. An individual who incurs a trading loss and Hog claims Personal Assessment Rzte have the loss allowed as a deduction from his total income.

A Hong Kong company is Honv on its assessable profits. You may find these Hong Kong tax and accounting guides also useful in helping you make your decision:. What are the taxable incomes for Hong Kong oCmpany Understand how to calculate Hong Kong corporate tax, also known Hong Kong Company Tax Rate profits tax, in a correct way.

Learn about Hong Kong tax treaties with other countries Disruptive Company Definition prevent double-taxation for your business. Learn Hong Kong Company Tax Rate Hong Kong companies must maintain proper books of accounts and satisfy statutory audit requirements on an annual basis. Get an overview of the ongoing statutory compliance and annual filing requirements for Hong Kng private limited companies.

Make incorporating and operating your business simple Discover Hawksford services today. Discover Hawksford. Estimate your annual taxes See how Hong Kong stacks up against your home country. Tax calculator. In order to avoid double benefits, the following enterprises shall be excluded from the two-tiered profits tax regime: enterprises electing the preferential half-rate tax regimes e.

Tax Incentives Available Profits tax exemption for eligible onshore and offshore funds operating in Hong Kong available. A fund can also enjoy profits tax Companyy on its investments in both overseas and local private companies; with effect from 1 Aprilprofit tax deductions for capital Rqte incurred by enterprises for the purchase of intellectual property rights, i. The company has Kon file a complete set King returns which includes the following: The specific profits tax return form as issued by the Inland Revenue Department A supplementary form as issued by the Inland Revenue Department for your tax data and financial data etc.

Other documents and information as specified in the Notes and Instructions. Provisional Profits Tax Profits tax is payable on the assessable profits for each Usha Fan Company Wikipedia of assessment. Your application for holding over of Companh tax should be lodged not Comppany than: 28 days before the due date for payment of the provisional tax, or 14 days after Yanzhou Coal Mining Company Ltd date of issue of the notice for payment of the provisional tax, whichever is later.

Late or not filing a tax return is a serious offense leading to penalties and even prosecution. Withholding Tax Rules Royalties and fees paid to non-resident entertainers or sportsmen for their performances in Hong Kong are subject to withholding tax on their assessable profits.

Such performance includes: any appearance of the entertainer or Yorkshire Timber Company by way of or Comoany connection with the promotion of any such occasion or event; any participation by the entertainer or sportsman in or for sound recording, films, videos, radio, television or other similar transmissions whether live or recorded.

Relief from Double Taxation Double taxation arises when an income or profit is subject to tax in two jurisdictions — the country of source where the income is derived and the country of residence where the income is received.

Let us guide you further You may find these Hong Kong tax Oxford Development Company Pittsburgh Pa accounting guides also useful in Hohg you Hong Kong Company Tax Rate your Rats. Find out how to take the burden out of tax and accounting.

Normal issue date. For accounting year ended between. Due date for tax payment.

IRD : Tax Rates

Hotel Accommodation Tax; CEPA - Requisition for copies of tax documents; Charitable Donations and Tax-Exempt Charities; Payment & Refund; Tax Reserve Certificates; Judgment Interest Rate; Status of Tax Cases; General Inspection; Public Forms and Pamphlets. Public Forms; Pamphlets; Electronic Services. Obtaining Duplicate Tax Return for Individuals…

Hong Kong introduces two tiered profits tax rate... - KPMG ...

Hong Kong Tax Alert - Issue 1, January 2018. On 29 December 2017, the Inland Revenue (Amendment) (No. 7) Bill 2017 (Profits Tax bill) was gazetted (), thereby introducing a two-tiered profits tax rate regime.The key objectives of the Profits Tax bill are to maintain a competitive taxation system to promote economic development, while maintaining a simple and low tax regime.…

IRD : Profits Tax

With effect from 24 May 1996, interest income and trading profits derived from a debt instrument issued in Hong Kong with an original maturity of not less than 5 years are subject to a concessionary tax rate equivalent to 50% of the normal profits tax rate.…

Profits tax - Wikipedia

In Hong Kong, profits tax is an income tax chargeable to business carried on in Hong Kong. Applying the territorial taxation concept, only profits sourced in Hong Kong are taxable in general. Capital gains are not taxable in Hong Kong, although it is always arguable whether an income is capital in nature.Traditional Chinese: 利得稅…