UNIQUE ADVANTAGES

Hong Kong has a simple tax system with low tax rates for businesses and individuals. There are only three types of taxes in Hong Kong: profits tax, salaries tax and property tax.

• For corporations, the two-tiered profits tax is fixed at 8.25% for the first HK$2 million of profits and above that, profits are taxed at 16.5%. For unincorporated businesses (mostly partnerships and sole proprietorships), the two-tiered tax rate is set at 7.5% and 15%.

• The standard salaries tax rate is 15% and there are generous personal tax allowances.

• Super tax deductions of up to 300% are available for R&D costs.

• Only income or profits derived in Hong Kong are taxed in Hong Kong. In addition, as at June 2024, Hong Kong has signed Comprehensive Double Taxation Agreements (CDTAs) with 50 jurisdictions.

• There is no sales tax or VAT, withholding tax, capital gains tax, estate tax or tax on dividends in Hong Kong.
  

Hong Kong is in the heart of Asia, at the mouth of the Pearl River Delta, on the southern coast of China, and within easy reach of major cities throughout Asia.

• From Hong Kong International Airport (HKIA), air travellers can reach most major Asian cities within four hours, while a five-hour flight connects Hong Kong with half the world’s population.

• HKIA is one of the world’s busiest air cargo hubs, while the city’s container port remains one of the world’s busiest and most efficient ports.

• Over 300 international container liner services connecting nearly 500 destinations worldwide on a weekly basis. This high degree of global connectivity plus a mature logistics industry puts Hong Kong at the centre of global supply chains.

• The Hong Kong-Zhuhai-Macao Bridge (HZMB) brings the large population and economic potential of the western Pearl River Delta within a three-hour commuting radius of Hong Kong.

• The Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link connects Hong Kong to the 45,000-km national high-speed rail network.