Hong Kong taxes are among the lowest in the world, and our tax regime is simple and predictable.
The
Profits tax rate is the same for foreign and local companies - a low
16.5 percent. The actual tax bill is often even less after various
deductions and depreciation allowances.
There is no capital gains tax in Hong Kong, withholding tax on dividends and interest or collection of social security benefits.
The
salaries tax rate is at a maximum rate of 15 percent, imposed only on
all salary income of individuals derived in or from Hong Kong. The
salaries tax is demanded on a yearly basis and can be paid in two
installments, usually between December and March.
The property
tax applies to owners of land or buildings situated in Hong Kong. It is
low by international standards: 16 percent (for 2004-5) of the rental
income from the land or buildings and an allowance of 20 percent is
permitted for repairs and maintenance.
There is no sales tax or
VAT in Hong Kong. The limited tax base, combined with exceptionally low
tax rates, makes Hong Kong's tax incidence much lower than in virtually
all other developed economies.
|
 |
Hong Kong's tax regime results in a low fiscal burden | |
|