Hong Kong has a simple, predictable and low tax system. The city only imposes three direct taxes – on profits, salaries and property – and has no sales tax, no withholding tax, no capital gains tax, no tax on dividends and no tax on an individual’s estate.

There are no customs tariffs on goods imported into Hong Kong apart from a few items that are subject to strict import and export licensing control. All that is generally required is for an import/export declaration to be submitted to the Commissioner of Customs and Excise within 14 days.

The government collects an excise duty on four types of goods: tobacco, hydrocarbon oil, spirits and methyl alcohol. In the 2008 budget, duty on both wine and beer was cut to zero.

According to the Forbes’ Tax Misery Index 2009, Hong Kong has the lowest tax misery in Asia Pacific and 3rd lowest in the world. Hong Kong’s tax misery is 37 points below Singapore and 117.5 points below Mainland China.