Low and simple tax regime

BizLeaders Asia - - Hk Start-up Global Business Hub Why Hong Kong -

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:

Profits tax

• 2-tier tax regime is adopted

• 8.25% for first net profit of HK$2M the outstandin­g if capped at 16.5%

Salaries tax

• 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. [1] CEPA The Closer Economic Partnershi­p Arrangemen­t

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