Hong Kong Tax Environment

Hong Kong has aligned its tax policy with its growth-oriented economic goals to become one of the most tax friendly environments in the world, with just three direct taxes, capped at between 15% and 16.5%, with further allowances and deductions possible.

That, and the lack of taxes for VAT, dividends, estate, capital gains and withholding, is why Hong Kong has emerged as one of the preferred locations for most global entrepreneurs. The jurisdiction has also made submitting business tax returns a straightforward process. However, with the vast number of tax incentives implemented in recent years, having local support is essential to ensure tax benefits are maximised.

Recent domestic tax changes