Tax Articles

📋 Key Facts at a Glance Global Minimum Tax: 15% minimum effective tax rate for MNE groups with revenue ≥ EUR 750 million, effective from January 1, 2025 Ma...

📋 Key Facts at a Glance Profits Tax: Two-tiered system: 8.25% on first HK$2M, 16.5% on remainder for corporations. Stamp Duty Reform: Special Stamp Duty (S...

📋 Key Facts at a Glance Hong Kong Property Rates: Progressive system for domestic properties: 5% on first HK$550,000 rateable value, 8% on next HK$250,000,...

📋 Key Facts at a Glance Fact 1: Hong Kong's two-tiered tax system means you pay the lower of progressive rates (2-17%) or standard rates (15-16%) on your i...

📋 Key Facts at a Glance Hong Kong's Territorial Tax System: Only Hong Kong-sourced profits are subject to Profits Tax. Foreign-sourced income is generally...

📋 Key Facts at a Glance Hong Kong Tax Advantage: No capital gains tax, no dividend withholding tax, and no inheritance tax Trust Benefits: Tax-neutral stat...

📋 Key Facts at a Glance Major Policy Change: All property cooling measures (BSD, NRSD, SSD) were abolished on February 28, 2024 Section 45 Relief: Availab...

📋 Key Facts at a Glance Territorial Tax System: Hong Kong only taxes profits sourced in Hong Kong. Offshore income is generally not taxable, but clear segr...

📋 Key Facts at a Glance Qualifying Debt Instruments (QDIs): Full profits tax exemption for green bonds and sustainable debt instruments issued on or after...

📋 Key Facts at a Glance Hong Kong Residency: Based on physical presence (180+ days in a tax year) or "ordinary residence" (habitual abode). Mainland China...

Let’s say you run a successful e-commerce business in Singapore, Australia or the United States with customers all over Hong Kong. Do you need to pay Hong Kong tax? The answer all depends on where your profit-generating activities take place. Hong Kong's unique territorial source taxation system brings significant advantages to non-resident e-commerce operators, but in order to properly apply these rules, it is necessary to have a deep understanding of what "Hong Kong-sourced" income is in the digital age.

Have you ever wondered why some companies are selected for tax audit by the tax bureau, while others are unscathed? In today's digital age, the Hong Kong Inland Revenue Department has transformed from a traditional tax agency into a sophisticated data analysis center. With the mandatory implementation of iXBRL electronic tax filing from the 2024/25 assessment year, and the advanced artificial intelligence system scanning millions of tax returns, it has never been more important for Hong Kong businesses to understand what situations will trigger tax review...