The Tax System In Hong Kong

The Tax System In Hong Kong


Companies registered in Hong-Kong are not taxable if no transaction is carried out in Hong Kong. If this is not the case the tax rate rises to 16.5% on profits made during the year.

A company will be liable for tax if:

  • The company's client base is in Hong Kong
  • The company's suppliers are in Hong Kong
  • Material destined for sale is stocked in Hong Kong
  • The company is partly or wholly managed on Hong Kong territory
  • The company has its own premises in Hong Kong and employs staff

If none of these conditions apply, ICO Services will ask the Hong Kong tax authorities for « offshore » status or « nil tax » so that you won't have to pay tax.

Hong Kong is a special administrative area, it is entirely permissible to conduct business with China without being subject to tax.

Tax declarations

18 months, to the day, after the registration of the company, the Hong Kong tax authorities will send a form entitled "Tax Return". Then is the moment to ask for offshore status, if applicable, and to supply an audited set of accounts. We will contact you, on a date convenient to you, to collect the information and deal with the tax declaration.

See also Offshore company in Hong Kong

Please do not hesitate to contact us regarding the tax system in Hong Kong or any questions. We will be happy to answer you, analyze your situation and send you our suggestions.