"Low tax rates and encouraging business" are the policies pursued by the Hongkong government. Hongkong has the advantages of many countries and regions, but also provides the best business environment for enterprises in terms of taxation.

Hongkong's unique tax system has played an important role in attracting investment, maintaining Hongkong's competitiveness and maintaining social stability. It is a model for many countries to learn first.

In July 1, 1997, Hongkong returned to People's Republic of China.

According to the basic law of the Hongkong Special Administrative Region of the People's Republic of China, the tax regulations, the tax rules and the Stamp Duty Ordinance, which are effective in June 30, 1997, still apply to Hongkong, while the basic tax policy remains unchanged.

Hongkong's current "

The Ordinance has been deeply influenced by the British legal system. Since its first promulgation in 1947, Hongkong has set up a review committee several times to reform Hongkong's tax system.

But up to now, Hongkong's tax system has not been adjusted in a large scale.

Hongkong's tax revenue adopts the principle of "place of ownership", that is, whether or not the company established in Hongkong or Hongkong residents only levy taxes on income generated in Hongkong, the income from outside Hongkong does not need to be taxed in Hong Kong.

The tax system in Hongkong is very simple. The taxes currently levied include profits tax, salaries tax, property tax, stamp duty and a small amount of tariffs.

In Hongkong, the profits earned by Hongkong companies from Hongkong need to be paid.

And if profits are from abroad, there is no need to pay.

According to the provisions of the Hongkong tax regulations, taxpayers pay the expenses associated with the operation to earn profits (for example: interest expense generated for the profit, bad debts and bad debts, research and development expenses, directors' remuneration, etc.), which can be deducted before tax.

In addition, dividends or investment gains obtained from companies that have paid profits tax and interest earned on deposits of authorized institutions can be exempted from profits tax.

Salaries tax in Hongkong is taxed by geographical origin, any one produced in Hongkong or Hongkong.

Salaries tax is payable.

The definition of deductible items by salaries tax is very clear. Some deductible items include charitable donations approved by the government, contributions to approved retirement schemes, personal study expenses, personal home loan interest and so on.

Property tax is a tax on owners' property (land and building) rental income.

The rental income of a limited company will be exempted from the property tax, and only profits tax will be paid.

The tax basis for property tax is the net assessable value, that is, the value of the assessable value minus the allowance paid by the owner, minus 20% of the maintenance allowance.

If property rent is not recovered, it can be deducted, but the rentals subsequently recovered must be taxed in the year of recovery.

Hongkong is a world-famous free trade port. Besides alcohol, tobacco, hydrocarbon oil and methanol, other goods do not have to pay customs duties, nor do they have any tariff quotas or surcharges.

In addition to less taxes, Hongkong is one of the lowest tax rates in the world.

At present, the profits tax rate of Limited Hong Kong Company is 16.5%, the profit tax rate of sole proprietorship or partnership is 15%, the rate of salaries tax in Hongkong is two, the rate of excess progressive applies to the tax rate of 2%-17%, net income is proportional to the tax rate of 15%, and taxpayers can choose a lighter tax according to their own circumstances.