Tax Services

Hong Kong has a simple tax system and limited type of taxes. It’s tax rates are among the lowest in the world. With proper tax planning, taxpayers can effectively reduce their tax burden by utilizing the tax allowances, deductions and exemptions available under the relevant ordinances.

Key Features of the Hong Kong Tax System

Low profits tax rates (8.25% on first HK$2M of assessable profits, 16.5% thereafter)
No capital gains tax, VAT/GST, dividend income tax, estate or inheritance tax
Extensive double taxation treaty network
Territorial basis of taxation (offshore profits are typically not subject to Hong Kong Profits Tax)

Offshore Profits Tax Exemption

Hong Kong adopts a territorial source principle of taxation. When properly structured and documented, profits sourced outside Hong Kong are typically not subject to Hong Kong Profits Tax. However, offshore profits tax exemption is not an automatic entitlement. It requires an application process and approval from the Tax Authority.

We can assist clients with preparing and submitting the application, liaising with tax officers, formulating responses to the inquiries from the Tax Authority, and ensuring all documents submitted are correct, complete, and substantively relevant. Please feel free to contact us for a confidential assessment of your offshore claim position and to develop a suitable tax planning strategy.

We Also Can Help

• Acting as clients’ tax representative
• Handling annual tax filing matters, such as profits tax return, salaries tax return, property tax return and employer’s return
• Assisting in answering inquiries raised by the Tax Authority
• Lodging an objection against a tax assessment
• Application for holdover of provisional tax
• Application for extension of time to file tax return