What is the current applicable corporate tax regime for a Hong Kong private company?
Hong Kong SAR adopted territorial tax regime under which only incomes derived inside Hong Kong are subject to corporate income tax. The two-tier tax rates applied for the fiscal year 2018/19 onwards are presented below:
- Net assessable income of the first 2mil HKD is taxed at 8.25%
- The remainder is taxed at 16.5%
In addition, there are no sales, capital gains, most interest and dividend incomes, withholding taxes in Hong Kong.