The inland revenue ordinance is one of hong kong's ordinances it regulates the inland revenue of hong kong. Sign in to your etaxcom account to start or continue your tax return, check your e-file status or download a copy of a past tax return. Discover the tax reasons why foreign investors and entrepreneurs choose hong kong as their preferred jurisdiction for establishing and expanding their business operations. Hong kong tax guide 2017 / 18 1 taxation in hong kong hong kong imposes three direct taxes for a year of assessment which ends on 31 march the taxes are on profits, salaries and property. The hong kong government taxes only income earned within the city expatriates and residents are taxed at either a progressive 2% to 17%, depending on income level, or a standard rate of 15% there is no capital gains tax in hong kong. 4 the scale 2 rates apply to residential property acquired by a hong kong permanent resident who does not own any other residential property in hong kong at the time of acquisition and in some other specified circumstances. Lexispsl hong kong tax - salaries tax providing practical guidance, forms and precedents on scope of charge and source rules. By abolishing estate duty, it is hoped that hong kong can attract more local and overseas investors to hold assets in hong kong and can further promote the development of hong kong as a trust and an asset management centre the revenue (abolition of estate duty) ordinance (the ordinance) will commence operation on 11.
Will moving to hong kong affect your us expatriate tax return learn about tax filing requirements, due dates, and exclusions in hong kong. If you have us tax filing obligations and live in hong kong, check out these tax tips: although your hong kong taxes are reported on an april to march fiscal year, you will need to report your us taxes on a january to december calendar year. Hong kong tax calculators salaries tax salaries tax payable is calculated at progressive rates on your net chargeable income or at standard rate on your net income, whichever is lower. The institute was incorporated as a company limited by guarantee on 29th september 1972 by a group of professionals with the major objectives of promoting the study of taxation, using as a venue for the exchange of taxation knowledge as well as to enhance the standard of tax professionals initially 34 members subscribed to the.
Jurisdiction’s name hong kong, china information on tax identification numbers section i – tin description hong kong, china does not. Here you can access the texts of recently signed us income tax treaties, protocols, and tax information exchange agreements (tieas) and the accompanying treasury department tax treaty technical explanations as they become publicly available, as well as the us model income tax convention. The tax on first registration of cars in hong kong is high relative to many other countries, and on june 15, 2011, the legislative council approved further increases this tax.
Hong kong tax alert 2 background currently, income from a hong kong employment is generally fully chargeable to tax in hong kong under section 8(1) of the iro. Since hong kong is not one of the globe’s tax havens, doing your taxes in hong kong is unavoidable for all expatriates fortunately, the usual hong kong income tax. All five questions are compulsory and must be attempted 1 damon cha is employed as a project manager with real estate development ltd (redl), a hong kong company which conducts a property development business in hong kong and china damon has his office in hong kong, but.
Income tax in hong kong is progressive, with rates from 2-17%, although the standard rate of tax is 15% (2013) allowances for single parents, married couples and for the number of dependent children reduce the taxable amount from the total salary. Under article 108 of the basic law of hong kong, the taxation system in hong kong is independent of, and different from, the taxation system in mainland china in addition, under article 106 of the hong kong basic law, hong kong enjoys independent public finance, and no tax revenue is handed over to the central government in china.
Hong kong tax alert 2 facts of the case victory world limited (vwl), a joint venture company established by five property developers in around 1993, was engaged in a residential development in kowloon chime corporation limited (chime), a company of the chinachem group, as one of the five property developers, held a 10. Issue 24: hong kong introduces beps bill marking a significant step up in its transfer pricing enforcement regime issue 23: landmark us tax reform to be signed into law – changes effective january 2018 issue 22: prospect of us tax reform by 2017 year-end rises after senate passes bill issue 21:tax.
Income derived outside hong kong is generally exempt from tax in the case of a financial institution carrying on business in hong kong, foreign sourced interest. Hong kong tax is some of the lowest in the world and helps the city attract legions of expats our beginner's guide takes you through the basics. A publication of deloitte touche tohmatsu limited taxation and investment in hong kong 2016 reach, relevance and reliability. Profits tax rates for companies (165%) and unincorporated businesses (15%) remain unchanged extend the profits tax exemption for qualifying debt instruments to cover instruments with maturity of any duration and hong kong listed debt securities. Issue 3: china clarifies beneficial ownership requirements – a look from a hong kong tax perspective issue 2: hong kong tightening up on corporate beneficial ownership – companies (amendment) ordinance 2018 issue 1: hong kong introduces two tiered profits tax rate marking a push towards a more. A hong kong scheme 6000 payment is includible in a recipient’s gross income under us tax laws where on the form 1040 should i report this income if a taxpayer is required to file a form 1040 us federal individual income tax return, the taxpayer must report a hong kong scheme 6000 payment as “other income” on line 21. In hong kong, the corporate income tax rate is a tax collected from companies its amount is based on the net income companies obtain while exercising their business activity, normally during one business year the benchmark we use refers to the highest rate for corporate income.
1 agreement between the government of the united states of america and the government of the hong kong special administrative region of the people’s republic. Tax treaties may allow residents of foreign countries to be taxed at a reduced rate, or to be exempt from us income taxes on certain items of income they receive from sources within the united states. (press release - march 29, 2018) two-tiered profits tax rates regime to be implemented from april 1 this year. Income tax and expat taxation is slightly different in hong kong than in other countries citizenship or residency isn’t necessarily considered when determining taxation any person who resides in hong kong for 60 days or more is subject to salary tax however, salary tax is only considered for income that comes from business conducted inside.