Taxes and duties for companies in Hong Kong

 

Startupr can work with your company as a:

  • bookkeeper
  • controller
  • business advisor

 

Due to its taxation friendly environment, Hong Kong is the right place for your business.

Income Tax

  • Corporate – 16.5%
  • Individual – 15%

Social Security

  • Employer – 5%
  • Employee – 5%

VAT – 0%

Withholding

  • Dividend – 0%
  • Interest – 0%
  • Royalties – 5%-16.5%

Source: Lowtax.net,. ‘Lowtax – Global Tax & Business Portal | Headline Tax Rates Around The World’. N.p., 2015. Web. 6 Oct. 2015.

 

“NIL” Profit Tax Return

If the company has not commenced business 0% tax rate applies.

 

Offshore Tax Exemption

0% rate of Income Tax for foreign income.

 

Startupr can help you:

  • keep proper business records
  • prepare and maintain accounting documents
  • book-keeping

Profit Tax Return

IRD (Inland Revenue Department) will isue the first PTR (Profit Tax Return) of the company within 1 to 2 months before the 2nd anniversary of the company incorporation.

Financial Year

The fist financial year starts on the firts day of the accounting reference priod and ends on the last day of that period.

Accounting Reference Period

A company is required determine an accounting reference period. The company will prepare the annual financial statements to this period.

The profit tax rate for corporations in Hong Kong is 16.5%.

 

Accounting Reference Period

A company shall determine its accounting reference period to which the company’s annual financial statements will be prepared.

Examples of a financial year:

 

Financial Year ends atTax Filing DateDocuments for Audit
31.03.15.11.No later than 1.9.
31.12.15.08.No later than 1.6.
Other date (e.g. 30.6.)30.04.No later than mid February

For further information on the Hong Kong tax system please visit Inland Revenue Department or check out our Profit Tax Return Guide.