Why Still Hong Kong?

[George78]

Hong Kong’s attractiveness in living and doing business is appealing, offering benefits that are uniquely available among other cities:

• a strategic gateway to growing Mainland China markets;
• a regional financial and logistics hub for expansion across Asia;
• a stable, highly-efficient, business-friendly cosmopolitan.

  
  Offering a predictable tax system and low tax rate.

  Hong Kong imposes only 3 kind of direct taxes – Profits Tax (for incorporated body), Salaries Tax (for personal income) and Property Tax (for income sourced from Hong Kong property).
  Hong Kong adopts territorial basis of taxation, only incomes sourced from Hong Kong are taxable.

  For corporate profits, 2-tier tax regime is adopted, the first HK$ 2 millions profits is taxed at 8.25%, while the outstanding will be taxed at 16.5%; For personal employment income, progressive tax regime with basic allowance rules, the first HK$ 132 K incomes is tax-free, tax rate on the next first HK$ 45 K incomes block is 2%, the second block is 7%, the third block is 12%, while the remaining is 17% (starting at year 2018).

  Most of the taxes that are common around the world that are not the case in Hong Kong. Neither sales tax or VAT, withholding tax, capital gains tax, dividends tax or estate tax are found here.

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[Brenda]

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