Tax News & Updates

📋 Key Facts at a Glance Hong Kong has no capital gains tax: Genuine capital gains from asset disposals are generally not taxable under the territorial sour...

📋 Key Facts at a Glance Hong Kong's Corporate Tax: A two-tiered system with rates of 8.25% on the first HK$2 million of profits and 16.5% on the remainder...

📋 Key Facts at a Glance Hong Kong's Territorial Tax System: Only profits sourced in Hong Kong are taxable at 8.25% (first HK$2M) and 16.5% (remainder) for...

📋 Key Facts at a Glance Stamp Duty on Property: Progressive rates from 1.5% to 4.25% for properties over HK$3 million. Special Stamp Duty (SSD), Buyer's St...

📋 Key Facts at a Glance Territorial Tax System: Hong Kong only taxes profits sourced within its borders, not worldwide income Two-Tier Profits Tax: Corpora...

📋 Key Facts at a Glance No Capital Gains Tax: Hong Kong does not impose capital gains tax, making it highly attractive for liquidity events FIHV Regime: Fa...

Let’s assume that your multinational company has been operating successfully for many years taking advantage of Hong Kong’s territorial source tax regime and extensive tax treaty network. Suddenly, you're faced with entirely new compliance requirements, economic substance tests, and potential double taxation risks. Welcome to the BEPS (Base Erosion and Profit Shifting) era, Hong Kong’s tax environment has undergone tremendous changes. The OECD's BEPS initiative reshapes how multinational enterprises use Hong Kong's tax treaties and transfer pricing policies, providing...

📋 Key Facts at a Glance Stock Transfer Stamp Duty: 0.2% total (0.1% buyer + 0.1% seller) plus HK$5 fixed duty per instrument Property Stamp Duty: Progress...

📋 Key Facts at a Glance Critical Choice: Hong Kong taxpayers can choose between progressive tax rates or standard rate - you pay whichever is lower Progres...

📋 Key Facts at a Glance No Separate Gig Worker Category: Hong Kong law doesn't recognize "gig workers" as a distinct legal category; workers are classified...

Imagine buying a Hong Kong residential unit for HK$10 million and saving HK$1.5 million overnight. This is exactly what happened on February 28, 2024 - Hong Kong revoked all property market demand management measures and completed the most dramatic stamp duty reform in more than a decade. This article will provide an in-depth analysis of how this evolution of the stamp duty system will reshape the Hong Kong property market, who will be the biggest beneficiaries, and the future impact on investors, homebuyers and the overall real estate market.

Is your multinational enterprise restructuring its supply chain due to global supply chain disruptions, geopolitical changes or ESG (environmental, social and governance) pressures? While operational changes can improve efficiency, they can also raise complex transfer pricing issues and have a significant impact on your Hong Kong tax situation. Hong Kong’s unique territorial source taxation system and its alignment with international Organization for Economic Cooperation and Development (OECD) standards mean you must understand how to deal with these changes in order to maintain compliance while...