Taxation Services
Hong Kong Profits Tax is a tax levied on the net profits on business. Companies and individuals (sole proprietor) carrying on business in Hong Kong will be chargeable to Profits Tax given that the profits are sourced in Hong Kong. 2019 onwards, profit tax is 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000.
Profits tax is chargeable on the assessable profits for each year of assessment. As the assessable profits for any particular year cannot be known until after the end of the year concerned, a provisional tax charge has to be raised. When the assessable profits for the year of assessment are subsequently ascertained, an assessment will be made and the provisional profits tax paid will be utilized to offset the tax liability under the assessment.
Unlike most countries which apply both residential jurisdiction and territorial jurisdiction in determining the tax liability of a person, Hong Kong adopts territorial source jurisdiction as its taxation principle and disregard the concept of residence. Thus, only profits sourced in Hong Kong would be taxable whereas their worldwide income will not be taxable. We can also assist our client claiming an offshore income.
Hong Kong Profits Tax is a tax levied on the net profits on business. Companies and individuals (sole proprietor) carrying on business in Hong Kong will be chargeable to Profits Tax given that the profits are sourced in Hong Kong. 2019 onwards, profit tax is 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000.
Profits tax is chargeable on the assessable profits for each year of assessment. As the assessable profits for any particular year cannot be known until after the end of the year concerned, a provisional tax charge has to be raised. When the assessable profits for the year of assessment are subsequently ascertained, an assessment will be made and the provisional profits tax paid will be utilized to offset the tax liability under the assessment.
Unlike most countries which apply both residential jurisdiction and territorial jurisdiction in determining the tax liability of a person, Hong Kong adopts territorial source jurisdiction as its taxation principle and disregard the concept of residence. Thus, only profits sourced in Hong Kong would be taxable whereas their worldwide income will not be taxable. We can also assist our client claiming an offshore income.
