Professional corporate tax services ensuring your business efficiently meets all tax obligations and fully complies with Hong Kong tax regulations.
At Hong Kong Business Services Centre Limited, we provide comprehensive tax services for businesses operating in Hong Kong. Our team ensures your company complies with all tax regulations while maximizing available tax benefits and deductions.
Ensuring your business adheres to all tax regulations and filing requirements.
Professional guidance on international tax matters and overseas expansion strategies.
Strategic tax planning to legally minimize your business's tax burden.
Hong Kong's tax system is relatively simple compared to many jurisdictions. The territory operates a territorial tax system where only profits arising in or derived from Hong Kong are taxable.
The standard profits tax rate is 16.5% for corporations and 15% for unincorporated businesses. A two-tiered profits tax system is available for eligible enterprises.
Hong Kong does not impose general sales tax, value-added tax (VAT), or business tax commonly found in other jurisdictions.
Hong Kong uses a territorial basis of taxation. Only profits arising in or derived from Hong Kong are subject to profits tax. Offshore profits are generally not taxable.
Under the two-tiered profits tax system, the profits tax rate for the first HK$2 million of assessable profits is reduced to enhance the competitive advantage of Hong Kong's tax regime.
| Entity Type | First HK$2 Million | Remainder |
|---|---|---|
| Corporations | 8.25% | 16.5% |
| Unincorporated Businesses | 7.5% | 15% |
The two-tiered rates apply to all entities with assessable profits in Hong Kong, except when an entity has one or more connected entities that have already been nominated for the two-tiered rates.
Every Hong Kong limited company will receive its first profits tax return approximately 18 months after incorporation. Regardless of whether the company has conducted business in Hong Kong, the tax return must be submitted with audited financial statements by the deadline (typically 3 months from issuance).
The first financial statements should be prepared within 18 months of incorporation, and annually thereafter. Companies must maintain accounting records for at least 7 years, as required by the Companies Ordinance.
We can act as your company's tax representative to help handle tax-related matters and communications with the tax authorities.
The Inland Revenue Department conducts sample checks on suspicious companies each year. Proper and careful handling is crucial to avoid and minimize potential losses and penalties.
Tax exemption is a feature of Hong Kong's tax system. Hong Kong applies the territorial source concept of taxation. Generally, certain income generated outside Hong Kong by a Hong Kong company may not be subject to Hong Kong tax.
Corporate Tax Returns
Professional corporate tax filing services:
Tax Compliance
Comprehensive tax compliance support:
Tax Advisory
Professional tax strategy advice:
Our corporate tax team helps businesses navigate the complexities of Hong Kong's tax system while identifying opportunities to optimize your tax position. Contact us today for professional corporate tax services.
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