Hong Kong's Territorial Tax System
Territorial Basis: Only income or profits sourced in or derived from Hong Kong are subject to tax. Offshore profits are generally not taxed, even if remitted to Hong Kong.
Low Tax Rates
16.5% standard rate, 8.25% on first HK$2M profits
No Capital Gains Tax
Capital asset sales generally not taxed
No VAT/GST
No value-added or goods/services tax
No Withholding Tax
Dividends and interest payments not subject to withholding
Salaries Tax
Progressive rates or standard rate, whichever is lower
Stamp Duty
Applicable on stock transfers and property transactions
Tax Compliance & Dispute Resolution
- Tax Return Preparation: Profits Tax Returns, Employer's Returns, and individual tax returns
- IRD Representation: Dealing with Inland Revenue inquiries, audits, and investigations
- Advance Rulings: Applications for IRD advance rulings on uncertain tax positions
- Tax Audits Support: Professional representation during tax audit processes
- Dispute Resolution: Assistance with tax disputes and appeals procedures
- Penalty Mitigation: Strategies to minimize penalties and interest charges
- Voluntary Disclosure: Guidance on voluntary disclosure programs for past compliance issues
Proactive Compliance: We ensure all tax planning strategies are fully compliant with current legislation, safeguarding you from risks while maximizing legitimate tax efficiencies.