Tax Laws & Policies

📋 Key Facts at a Glance No Estate Duty: Abolished since February 2006 – no inheritance tax on assets passing to heirs No Capital Gains Tax: Investment appr...

📋 Key Facts at a Glance Dividend Tax Rate: 0% - Hong Kong imposes no tax on dividends paid to shareholders, local or foreign. Corporate Tax Rate: 8.25% on...

Did you know that your company’s audited financial statements are more than just a compliance document? It is also the cornerstone for the Hong Kong Inland Revenue Department to calculate your company’s profits tax liability. In Hong Kong, a corporation can enjoy a preferential tax rate of 8.25% on its first HK$2 million in profits, and the tax rate on subsequent profits is 16.5%. Ensuring that your audit work is accurate is not only good practice, it is also key to accurately assessing taxes and avoiding costly fines.

For multinational enterprises operating in both Hong Kong and Mainland China, transfer pricing compliance is a complex challenge. Although both places follow the OECD (Organization for Economic Co-operation and Development) BEPS (base erosion and profit shifting) principles, there are significant differences in specific implementation, enforcement efforts and compliance requirements. A thorough understanding of these differences is critical to avoid double taxation, reduce penalties and ensure smooth cross-border business operations. This article will break down for you in detail the transfer pricing compliance between the two places...

Are you having a tax dispute with the Hong Kong Inland Revenue Department? There are big stakes at stake, deadlines are tight, and the cost of choosing the wrong legal team can go far beyond monetary losses. With tax authorities increasingly scrutinizing all taxpayer categories, and with new global tax rules coming into effect in 2025, having the right team of representatives in place has never been more critical. This guide will help you understand Hong Kong's complex tax dispute environment and build a winning legal team.

Is your Hong Kong business prepared for the IRD’s increasingly sophisticated transfer pricing scrutiny? As global tax transparency initiatives accelerate and Hong Kong commits to OECD standards, transfer pricing has evolved from a technical compliance exercise to a vital business risk management function. This guide provides practical strategies to help you proactively navigate Hong Kong's transfer pricing environment, avoid costly fines, and maintain a competitive advantage in Asia's premier financial center.

📋 Key Facts at a Glance Complete Abolition: Special Stamp Duty (SSD), Buyer's Stamp Duty (BSD), and New Residential Stamp Duty (NRSD) were all abolished ef...

📋 Key Facts at a Glance Tax System Fundamentals: Hong Kong operates a territorial tax system (only Hong Kong-sourced income taxed) while Mainland China app...

📋 Key Facts at a Glance Current Stamp Duty Rate: 0.1% per party (0.2% total) effective from November 17, 2023 Stock Connect Treatment: Northbound trades pa...

📋 Key Facts at a Glance Tax Rate: Property tax is 15% on net assessable value (2024-25) Statutory Allowance: 20% automatic deduction for repairs and outgoi...

📋 Key Facts at a Glance Profits Tax: Two-tiered system: 8.25% on first HK$2M, 16.5% on remainder for corporations. Only territorial income is taxed. No Cap...

Imagine you are living in Hong Kong, working for a US company, and holding bank accounts in three different countries. Does this sound like the perfect remote working model? While this flexibility is undeniable, such cross-border arrangements can create a complex web of tax liability that can ensnare expatriates if they are not careful. Faced with Hong Kong’s unique territorial source taxation principle and evolving international tax rules, remote workers are facing some hidden risks...