Low and simple tax regime
Hong Kong charges some of the lowest tax rates in the world that compliment a simply tax system; this is the main reason why foreigners seek to start a business in Hong Kong – low taxes.
The city only imposes direct taxes and has generous allowances and deductions which reduce taxable amounts. These are the tax rates in Hong Kong:
• 2-tier tax regime is adopted
• 8.25% for first net profit of HK$2M the outstanding if capped at 16.5%
• Maximum 15%
There is no capital gains tax, nor any withholding tax on dividends and interest tax. Furthermore, there is no sales tax or VAT and estate tax in Hong Kong.  CEPA The Closer Economic Partnership Arrangement