Tax Articles

📋 Key Facts at a Glance Hong Kong's Territorial Tax System: Only profits sourced in Hong Kong are taxable, with foreign-sourced income generally exempt Pro...

📋 Key Facts at a Glance Tax Neutrality: Hong Kong trusts enjoy tax neutrality on foreign-sourced income under the FSIE regime (effective January 2024) No C...

📋 Key Facts at a Glance Tax Scope: Salaries Tax targets employment income; Profits Tax targets business income Tax Rates: Salaries Tax uses progressive rat...

📋 Key Facts at a Glance Profits Tax Rate: 8.25% on first HK$2 million of profits, 16.5% on the remainder for corporations. Enhanced R&D Deduction: 300% tax...

What should I do if I receive a tax assessment notice from the Hong Kong Inland Revenue Department but I think the calculation is incorrect? Many taxpayers will feel panicked, but the reality is that most tax disputes in Hong Kong are ultimately resolved through negotiation rather than litigation. Understanding the IRD's dispute resolution framework, your rights, and effective communication strategies can turn a stressful situation into a manageable process that often ends with a favorable settlement agreement.

📋 Key Facts at a Glance Progressive Rating System: Effective January 1, 2025 for high-value domestic properties only Non-Domestic Properties: Flat 5% rate...

📋 Key Facts at a Glance Legal Separation: Hong Kong trusts create a legal barrier between personal assets and trust assets, shielding them from mainland cr...

📋 Key Facts at a Glance Tax Year: Hong Kong's tax year runs from April 1 to March 31. Salaries Tax: Progressive rates from 2% to 17%, or a standard rate of...

📋 Key Facts at a Glance Profits Tax for Green Projects: Qualifying businesses can benefit from Hong Kong's two-tiered profits tax system: 8.25% on the firs...

Are the service fees charged by your Hong Kong company to other companies in the group appropriate? Or are you unknowingly creating tax risks that could trigger tax scrutiny, fines, or even double taxation? In today's interconnected global economy, multinational enterprises must navigate complex transfer pricing regulations while ensuring compliance with Hong Kong's unique territorial source taxation system. This guide will provide an in-depth look at managing intra-group services and transfer pricing security in Hong Kong's changing regulatory environment...

Imagine moving goods worth billions through one of the world's busiest ports without paying a penny of customs duties. This is not a hypothetical scenario, but a reality that happens every day as companies take advantage of Hong Kong’s unique advantages as Asia’s top re-export hub. With its strategic location, world-class infrastructure and unparalleled free port status, Hong Kong facilitates trillions of Hong Kong dollars in trade every year, becoming a key gateway between mainland China and global markets.

Did you know? Even though inheritance tax has been abolished in Hong Kong since 2006, your "domicile" status may still trigger huge inheritance taxes in other countries. For international families and entrepreneurs whose assets are spread across multiple jurisdictions, understanding Hong Kong’s domicile rules is not only an academic discussion, but also a key part of protecting wealth and passing it on to future generations. This guide explains how domicile works in Hong Kong and why it will remain crucial in global estate planning in 2024-2025.