Hong Kong: A Guide to Tax Regulations in Hong Kong 2019 – 2020
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When considering moving a business to a new market, one of the main considerations is that country’s tax regime. What are the incentives that would attract foreign investment? Are there double taxation treaties? What is the corporate tax rate?
Hong Kong is a special administrative region of China. The most widely spoken language is Cantonese (Chinese) and the currency unit is the Hong Kong dollar (HKD). This guide aims to provide the structure of tax regulation in Hong Kong based on current tax practices and laws.
II. Income tax
In Hong Kong, the Inland Revenue Ordinance charges office income, a pension against payroll, employment, and business or trade profits tax to corporate income tax and income tax. real estate property tax. Undoubtedly, any income that does not fall into any of the above categories is not subject to tax. Right now, some of the categories that are not yet taxable in Hong Kong are:
- Value added tax
- Capital gains tax
- Inheritance tax
The list is not exhaustive, but an overview of the categories on which tax is not levied.
What is the tax base?
The basis for imposing taxes in Hong Kong is territorial. Generally, income is taxable in Hong Kong provided it is derived from or originated in Hong Kong. However, there are a limited number of separate business receipts that may be taxable in Hong Kong.
What is the evaluation year?
The tax year or tax year is April 1 to March 31 of the following year. The assessment is based on the income accrued during that particular tax year for property tax and salaries. However, while considering income tax, the valuation is based on the accounting profits for that financial year that ends in the tax year while maintaining an appropriate adjustment for tax purposes.
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The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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