Hongkong, an international finance center, is known as a free trade port. Hongkong remains competitiveness with its low and simple taxation.So entrepreneurs choose to start their business in Hongkong.
Carrie Lam ChengYuet-ngor,HK Chief Executive.Last week,she put forward profits tax reform. It will be implemented after passing relevant laws by Legislative Council of Hong Kong.
What Is Profits Tax?
According to the definition from Inland Revenue Department of Hong Kong, persons, includingcorporations, partnerships, trustees, and bodies of persons carrying on any trade, profession or business in Hong Kong are chargeable to tax on allprofits arising in or derived from Hong Kong from such trade,profession or business.
And now, theimplementation seems to be in the air!!!
1、A Huge Boost
As you see in the form above, the tax rate of the first 2 million HKD annual profits is expectedto be reduced to 10%! Surprisingly, it is estimated that small and medium enterprises in HK will benefit from tax reduction for at least 40% less than before! Hurray!!!
2、Simpliest Tax System
Under CRS, many entrepreneurs in China choose to establish their companies in HK because of lower and simpler taxation, comparing to tax system in Chinese mainland.Further more, only corporate incomes from HK are calculated in the payable taxunder HK tax system.
3、Advantages of HK Company
Besides from lower tax rate, there are also many reasons for establishing HK companies:
HK company is the most popular offshore company.
In foreign trade, only corporate incomes from HK need to pay tax.
Opening HK bank account in the name of HK company makes it moreconvenient to receive USD.
HK Corporate image,more internationally recommended and popular.
A proper taxation plan for HK company helps to avoid unnecessary tax and risk.
Any question about HK bank account or establishing HK company, welcome to contact wellTreasure!
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