Conditions
Companies registered in Hong-Kong are not taxable if no transaction is carried out in Hong Kong. If this is not the case the tax rate rises to 16.5% on profits made during the year.
A company will be liable for tax if:
- The company's client base is in Hong Kong
- The company's suppliers are in Hong Kong
- Material destined for sale is stocked in Hong Kong
- The company is partly or wholly managed on Hong Kong territory
- The company has its own premises in Hong Kong and employs staff
If none of these conditions apply, ICO Services will ask the Hong Kong tax authorities for « offshore » status or « nil tax » so that you won't have to pay tax.
Hong Kong is a special administrative area, it is entirely permissible to conduct business with China without being subject to tax.
Tax declarations
18 months, to the day, after the registration of the company, the Hong Kong tax authorities will send a form entitled "Tax Return". Then is the moment to ask for offshore status, if applicable, and to supply an audited set of accounts. We will contact you, on a date convenient to you, to collect the information and deal with the tax declaration.
Need more information about Hong Kong and the tax system?
Do you have more questions regarding the tax system in Hong Kong? We will be happy to answer you, analyze your situation and send you our suggestions.
Because confidentiality is one of the most important aspects of our work, all information entered on this form will be kept strictly confidential secured using 256 bits SSL encryption.