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The Tax System in Hong Kong

What sort of taxation ?

Companies registered in Hong-Kong are not taxable provided that 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 :

• it has its own premises in Hong Kong and employs staff
• if the company is partly or wholly managed on Hong Kong territory
• if its client base is in Hong Kong
• if its suppliers are in Hong Kong
• if material destined for sale is stocked in Hong Kong

If none of these conditions apply, SFM will ask the Hong Kong tax authorities for « offshore » status or « nil tax » so that tax won't have to be paid.
It should be noted that as Hong Kong is a special administrative area, it is entirely permissible to conduct business with China without being subject to tax.

Tax declarations

The Hong Kong tax authorities will send out a form entitled « Tax Return » 18 months, to the day, after the registration of the company. Then is the moment to ask for « offshore » status, if applicable, and to supply an audited set of accounts. Our company will contact you, on a date convenient to you, to collect the information and deal with the tax declaration.