Amedia Hong-Kong - Create your LTD in Hong-Kong!

Tax advantages in Hong Kong

With regard to tax arrangements, Hong Kong presents considerable advantages for companies whose activities are based on the mainland or abroad (outside HK).

In fact, all profits and revenues originating from commercial trade taking place outside the city of Hong Kong are non-taxable. Conversely, local companies whose revenues and profits originate in HK are obliged to pay a 16.5% tax on profits. (Persons working in Hong Kong also have to pay a 15% tax on the revenues).

Benefits

• 0% tax on profits.
• 0% tax on dividends, capital gains, interest, repatriation of a branch's profits and losses, and capital gains on assets if commercial trade takes place outside Hong Kong (on the mainland or abroad). Royalties represent an exception to the above.
• 0% sales tax.
• 0% VAT.
• 0% business or employer tax.
• A company's interest expenses and the depreciation of assets are deductible from taxable profit.
• No right of succession to shares held by non-residents.