Profit tax is payable by every company on revenue earned in Hong Kong. Profits which have a foreign source (offshore profits) are usually not subject to Hong Kong Profit Tax. Only income which has a source in H.K. is taxable here.
For example, a person who runs a business in Hong Kong (without a permanent office or employees nor heavy presence in the city) , but earns profits from Europe is required to pay zero tax on those earnings. Hong Kong profit tax rate system itself is very straightforward, but its application in certain cases can be sometimes confusing.
The gateway to China
If you wish to explore the subject in greater depth, we recommend that you get help from our professional advisers.
Similar to most jurisdictions such as Singapore and Seychelles BVIs, non-taxable items in include offshore incomes, capital gains, bank deposit interest and dividends.
The vibrant city has a dynamic economy. In fact, Hong Kong is often referred to as the gateway to China. It is a great location for foreign investors who wish to do business in China. Offshore business in H.K can be owned 100% by foreigners.
Apart from this, there are many local and international banks in Hong Kong. This means that it is easy to find a bank here that will meet your specific needs. Opening a bank account takes less than an hour (meeting and a waiting time of two weeks).
A specific tax system
Establishing an offshore business in Hong Kong is relatively simple and inexpensive and is definitely worth considering. Hong Kong’s friendly tax system, many secure banks, low business costs, strict privacy laws and stable economy are just some of the benefits you may want to consider as reasons for setting up an offshore company in Hong Kong.
If you have any question about Hong Kong Profit Tax Rate, formation of an offshore company in Hong Kong or just anything – contact us
