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Hong Kong Tax
Editor:admin  Date:2014-08-18  Browse:11208 Text Size Print

Our tax system is simple and clear, Hong Kong is divided into three major tax categories: profits tax, salaries tax and property tax. 
Profits Tax 
A brief account of profits tax in Hong Kong only to profit from tax, non-profits, even if the money comes from Hong Kong there is no need to import tax. 08,09 profits tax rate is 16.5 percent, is one of the lowest rates worldwide. Did not levy any hidden "additional" tax. Hong Kong has no capital gains tax, tax on dividends or interest tax; capital allowances and depreciation provisions are also very generous. Hong Kong recognized professional reinsurance companies offshore business can enjoy more discount as low as 8.75 percent corporate tax. For research and development work, the Hong Kong implemented generous tax incentives, the project includes a deductible expenditure on market research, feasibility studies and other business and management and related research activities. Also very generous depreciation allowances. Where expenditure on new production equipment and computer hardware and software will receive 100% of all real-time credit; capital expenditure construction of industrial buildings and some buildings will receive 20% of the beginning of the allowance will receive an additional 4% per year after the period allowance until the entire amount of credit spending. Commercial buildings will receive 4 percent of the annual rehabilitation allowance. The government also provides funding to encourage technology companies with business opportunities and applied research and development activities. In addition, the cost of training employees to learn new technology can enjoy up to 75% of the cost of funding allowance. Basically, the only company profits, salaries and property rental income only to be taxable. In most countries, all items of income and profits required to pay up to 40-50% of the tax, while in Hong Kong, only from within Hong Kong and the profits of trade, industry or business operating in Hong Kong only to be taxable, revenue from outside Hong Kong Yigai not subject to tax. Therefore, the relative rate of almost all other developed countries, the overall effective tax rate in Hong Kong is indeed much lower. Salaries tax is also limited to salaries from Hong Kong, will impose any income tax exemption from the field, nothing has two tax incentives 1) to purchase 60% 2) to purchase computer hardware and software that machinery, stationery and other initial capital expenditure amounted to asset depreciation expenditure incurred will be fully deducted 3) for the renovation of commercial and industrial costs paid by the commercial building projects can be divided into five equal annual tax deduction 4) Hong Kong enterprises such as the creation (processing plant in the country), just profit 50% rated as from Hong Kong profits tax 3 general assessment cycle assessment year ended March 31 each year, or December 31 of each account period of 12 months. However, the newly formed company to allow the first account of not more than 18 months. 4, exemptions and deductions 1) Investment income from dividends or profits tax has been paid the company acquired, may not be counted assessable profits; interest on deposits with authorized institutions acquired Profits Tax Exemption. 2) the taxpayer for profit and pay expenses associated with the business, may be allowed to deduct. These include: · to earn loan for bad and doubtful debts expense · · · Research and development costs of the profits generated by the directors' remuneration 3) calculation of assessable profits, the following items are not deductible: · to produce any of the non-loss or withdrawal of funds to pay for the profits of the cost of capital improvements · and · any capital expenditure can be recovered insurance plan or compensate for the loss of the contract to produce the non-profit premises occupied or used to pay rent and related expenses paid various taxes · · breach of the law, to pay traffic fines 
Salaries Tax 
A brief account of Hong Kong salaries tax is taxed according to geographical origin, any arising in or derived from Hong Kong's income subject to salaries tax in Hong Kong. 2, the year of assessment from April 1 to March 31 next year 3, deductions and allowances for salaries tax deductible items defined very clearly, you can deduct part of the government-approved charities, including contributions to retirement plans approved payment of contributions, education expenses, home loan interest of all personal expenses, must be produced entirely or the assessable income incurred. 4, the rate of salaries tax standard rate can be calculated at progressive rates or to pay tax, whichever is less: a) the standard rate to 16% of total net income calculation 2) to salaries tax at progressive rates 
Property Tax 
1, the tax base of property tax is the tax to those who own rental properties in Hong Kong to receive rent levied to the property's net assessable value is calculated according to the standard rate of 16%. 2, the year of assessment from April 1 to March 31 next year three, the standard property tax assessment assessable net rental income deductions in the year the rates paid by the owner, and then subtract 20% of maintenance expenditure allowance after the calculated number. In addition, other expenses are not deductible, but can not recover the rent will receive deductions. Subsequently recover the rent shall be treated as income in the year to recover the calculations. Ltd. If you have a property to collect rent exempted from property tax, just to pay profits tax.

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