Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Hong Kong
New tax reform: No specific information
New tax treaties:
- Tax treaty between Hong Kong and Belarus is gazetted by Hong Kong (and ratified by Belarus).
- Tax treaty between Hong Kong and Latvia is gazetted by Hong Kong.
- Tax treaty between Hong Kong and Pakistan is gazetted by Hong Kong.
- Tax treaty between Hong Kong and New Zealand is signed.
- Tax treaty between Hong Kong and Cambodia is under negotiation.
- Tax treaty between Hong Kong and Australia is under negotiation.
Local tax advisors
No specific information on the local tax advisors.
Local tax administration
Website Tax administration: Click here
Entities are considered to be resident for tax purposes in Hong Kong if their place of management & control is in Hong Kong.
However, the place of residence is subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 16.5%.
Non-taxable income includes the following:
- Dividends (participation exemption)
- Certain capital gains
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption
Carry forward: yes indefinitely, but some restrictions may apply
Carry back: No
No specific information on assessment, filing of tax returns and payments.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Hong Kong are the following, subject to the provisions of an applicable double tax treaty, if any.
There is no WHT on the profits paid from a branch to its foreign head office
In general there is no WHT on dividends.
In general there is no WHT on interest.
The effective WHT rate on Royalties is 4.95%.
In general there is no WHT on management fees.
In general there is no WHT on technical services.
Generally capital gains on sale of shares in resident companies are not taxed.
The general statute of limitation is 6 years starting at the end of the year in which the tax return had to be filed.
The statute of limitation is extended to 10 years for negligent tax fraud and for wilful tax fraud.
There is no foreign exchange control in Hong Kong.
There are no thin capitalization rules in Hong Kong.
Do not hesitate to share your experience in Hong Kong with us in the comments below. Any comments are welcome !