Tax Haven Hong Kong

While Hong Kong tax haven taxes based upon territoriality, there are many other fiscal incentives that are made available to companies that operate in Hong Kong. For example, capital expenditure incurred from renovating a business place, a plant and machinery can be written off for over a five year assessment period while reinsurance companies receive concessionary tax rates for business done outside tax haven Hong Kong,

As a tax haven, Hong Kong effectively avoids double taxation by exempting companies that operate domestically from paying tax on income or profit that is earned overseas. Similarly, domestic companies that are taxed overseas can apply for a tax credit to have those taxes paid outside Hong Kong treated as deductible expenses. With over 35 double tax treaties in vigor, Hong Kong tax haven makes it possible for Hong Kong companies to benefit from favorable tax and trading privileges in other countries around the world.

As a general rule, Hong Kong offshore companies are not subject to withholding tax. However, non-resident entertainers and sportsmen that earn money in Hong Kong are subject to withholding tax on royalties and fees. Hong Kong tax haven however does not tax any of the profits or interest that this class of individuals may earn in Hong Kong tax haven.

During the period 1839 to 1842, Hong Kong tax haven was a colony of Britain and extended only to territory known as Hong Kong Island. Eventually, by the end of 1898, however, Hong Kong tax haven boundaries were made to reach the New Territories and the Kowloon Peninsula.

Tax haven Hong Kong has a population of an estimated 7,055,071 inhabitants, according to a census conducted in 2010. The total land area is about 1,104 square kilometers and the currency used is the Hong Kong Dollar (HKD). As a former British colony and Special Administration Region of China, Hong Kong tax haven functions under a ‘one country, two systems’ regime. This principle enables Hong Kong tax haven to have its own political system, while the judiciary system is based on common law.

Hong Kong tax haven has 18 geographic districts. Every geographic district in tax haven Hong Kong has its own representative council. The government obtains advice on various community and local matters from the councils.

Hong Kong tax haven is known for free economy and for being very supportive of free enterprise and international business. Hong tax haven international financial center is considered the most dominating in Asia and is an intermediary for large amounts of foreign direct investment into that region.

One of the most unique features of Hong Kong tax haven is its fiscal regime which is pro business and has put in place a number of low tax and anti double taxation incentives for entrepreneurs. The corporate tax rate of Hong Kong tax haven is 16.5% which is applied as a flat tax rate. Locals and foreigners are exposed to the same economic conditions of the level playing field that has been established for providing all economic players and investors with the same fiscal and economic privileges, incentives and opportunities.

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