Tax regulations

A Guide to Tax Regulations in Hong Kong 2019 – 2020 – Taxation


Hong Kong: A Guide to Tax Regulations in Hong Kong 2019 – 2020

To print this article, simply register or connect to Mondaq.com.

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:

  1. Value added tax
  2. Gift
  3. Capital gains tax
  4. Sales
  5. Turnover
  6. Inheritance tax
  7. Pay

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.

To view the full article click here

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR POSTS ON: Hong Kong Tax

Comparative guide to tax countries

Elias Neocleous & Co LLC

Apart from the implementation of EU directives, changes to Cypriot tax laws are generally “infrequent”. It follows that taxpayers can undertake transactions with a high degree of …

The 2021 Series Finance Law Part 1 – Taxation

AXIS Fiduciaire Ltd

The Finance (Miscellaneous Provisions) Act 2021 was published on August 05, 2021 and it brings into force a number of amendments to Mauritian legislation.

Budget 2022 (KSi Malta)

Finance Malta

The government forecasts real growth of 6.5% and 8.6% in nominal terms in 2022, while growth is expected to be 4.7% and 4.5% in 2023 and 2024.

Netherlands Double Taxation Agreement

ASC Law Firm

There is no withholding tax on interest, as long as the beneficiary of the interest is the beneficial owner of the income.


Leave a Reply

Your email address will not be published.