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HONG KONG TAX GUIDE 2024
10 quick facts about Hong Kong Taxation System
Benefits: Holding Company
01HK does not have withholding tax in most circumstances
02HK does not tax on capital gains in most circumstances
03HK does not tax on dividend income in most circumstances
04HK has signed DTAs with 49 tax jurisdictions
Transfer Pricing Rule
05HK has its own transfer pricing rule
Benefits: Trading Company
06HK does not have GST, VAT or DST
07HK does not adopt worldwide taxation system
08HK is well known for its low corporate income tax rate
Employer Obligations
09HK employers have no obilgation to withhold tax for employees
10Employers have to report salaries paid to employees, even when they work outside HK
Benefits: Holding Company
01HK does not have withholding tax in most circumstances
02HK does not tax on capital gains in most circumstances
03HK does not tax on dividend income in most circumstances
04HK has signed DTAs with 49 tax jurisdictions
Transfer Pricing Rule
05HK has its own transfer pricing rule
Benefits: Trading Company
06HK does not have GST, VAT or DST
07HK does not adopt worldwide taxation system
08HK is well known for its low corporate income tax rate
Employer Obligations
09HK employers have no obilgation to withhold tax for employees
10Employers have to report salaries paid to employees, even when they work outside HK
Full Version Download Hong Kong Tax Guide 2024
Avoid Double Taxation in Cross-Border Business
Tax Law in Hong Kong

Capital gains generally taxed at 0%

Dividend income generally taxed at 0%

For the first HK$2 million of profit, half tax rate applies to HK Co.

Salaries tax - Max. tax rate at 16%

Profits tax - Max. tax rate at 16.5%

HK does not impose withholding tax

HK adopts the Territorial Concept of Taxation

Capital gains generally taxed at 0%

Dividend income generally taxed at 0%

For the first HK$2 million of profit, half tax rate applies to HK Co.

Salaries tax - Max. tax rate at 16%

Profits tax - Max. tax rate at 16.5%

HK does not impose withholding tax

HK adopts the Territorial Concept of Taxation

Comprehensive Double Taxation Agreement (DTA)

HK has signed DTAs with 49 tax jurisdictions.

Setting up substance in HK is simple and convenient.

HK offers an abundance of finance and trade support professionals

HK is located at the heart of Asia

HK should be the first place to consider for business expansion

HK has signed DTAs with 49 tax jurisdictions.

Setting up substance in HK is simple and convenient.

HK offers an abundance of finance and trade support professionals

HK is located at the heart of Asia

HK should be the first place to consider for business expansion

Investment Choice in Mainland China and how can HK holding entity help
investment-choice
Wholly Foreign-owned Enterprise
Benefits:
 Dividends, interest and royalties paid to on-residents of Mainland China are generally subject to 10% withholding tax on that country. If the recipient is a Hong Kong tax resident, the withholding tax can be reduced to between 5% and 7% under the Double Taxation Agreement (DTA) between Mainland China and Hong Kong.
investment-choice
Representative Office
Tax credit can be claimed to offset HK profits tax liabilities
investment-choice
Wholly Foreign-owned Enterprise
Benefits:
 Dividends, interest and royalties paid to on-residents of Mainland China are generally subject to 10% withholding tax on that country. If the recipient is a Hong Kong tax resident, the withholding tax can be reduced to between 5% and 7% under the Double Taxation Agreement (DTA) between Mainland China and Hong Kong.
investment-choice
Representative Office
Tax credit can be claimed to offset HK profits tax liabilities
Full Version Download Hong Kong Tax Guide 2024
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