Tax Articles

Did you know that "owning" a property in Hong Kong is actually just holding a long-term lease granted by the government? Unlike freehold ownership, which is common in most financial centers around the world, Hong Kong adopts a unique leasehold system in which the government retains ownership of almost all land. How does this system work? What fees do owners need to pay each year? What impact will the much-anticipated lease expiry in 2047 have on today’s property owners? This article will give you a comprehensive breakdown of Hong Kong's land ownership system, rates...

📋 Key Facts at a Glance Four Dutiable Commodities: Hong Kong taxes only liquor, tobacco, hydrocarbon oil, and methyl alcohol Tobacco Duty: HK$2,506 per 1,0...

📋 Key Facts at a Glance Historic Change: Buyer's Stamp Duty (BSD) was completely abolished on February 28, 2024, ending 13 years of property cooling measu...

📋 Key Facts at a Glance Territorial Tax Principle: Hong Kong only taxes profits sourced in Hong Kong. Determining the source is the critical compliance cha...

📋 Key Facts at a Glance Stock Stamp Duty Rate: 0.1% per party (0.2% total per transaction) effective November 17, 2023 Capital Gains Tax: No capital gains...

Are you a "Twin Cities Man" with income in both Hong Kong and the Mainland? Are you worried about the same income being double taxed by two governments? Hong Kong adheres to the principle of geographical source taxation, while the Mainland taxes the global income of tax residents. This difference makes traveling between the two places feel like walking in a tax "landmine". The good news is that Hong Kong and the Mainland have entered into a "Comprehensive Avoidance of Double Taxation Arrangement" to provide you with an umbrella of protection from double taxation. But the premise is that you must...

📋 Key Facts at a Glance Hong Kong Corporate Tax: Two-tiered system: 8.25% on first HK$2M profits, 16.5% thereafter. Only Hong Kong-sourced profits are taxe...

📋 Key Facts at a Glance Free Port Status: Hong Kong imposes no customs duties on 99% of imports, with no VAT or GST system Four Dutiable Categories: Only l...

📋 Key Facts at a Glance Continuous Contract Rule: The "4/18 rule" (4 consecutive weeks, 18+ hours/week) determines statutory employment rights, but propose...

📋 Key Facts at a Glance Global Minimum Tax (Pillar Two): Enacted June 6, 2025, effective January 1, 2025. Applies a 15% minimum effective tax rate to multi...

Hong Kong is determined to develop into Asia's top innovation hub. The government has successfully attracted 84 strategic companies to settle in the city and invested HK$50 billion in areas such as artificial intelligence, biotechnology and financial technology. Although Hong Kong does not have stamp duty exemption specifically for "growth companies", savvy investors can optimize their investment structure through various exemption mechanisms, tax incentives and government subsidy schemes. This article will reveal to you how to strategically use Hong Kong's tax environment to invest...

📋 Key Facts at a Glance Tax Exemption Framework: Section 88 of the Inland Revenue Ordinance provides profits tax exemption for qualifying charitable instit...