Hong Kong’s tax system is one of the simplest and lowest in the world. We consistently rank as one of the most business-friendly jurisdictions globally. Hong Kong follows a territorial tax system. This means that a tax will be levied only on trade that is conducted within Hong Kong. If your business is in Hong Kong, and your profits are derived outside of Hong Kong, you are not liable for profits tax.

Furthermore, corporations can opt for one of two options for profit tax rates:

• A single-tier option taxes corporations at 16.5% of profit; 15% for unincorporated businesses.
• A two-tier option assesses a lower tax at half the single-tier rate for profits below HK $2m; for profits above HK $2m, the regular rate is charged. However, for a group of entities owned by one entity, only one entity can leverage the two-tier option.

Managing Globally Connected Organisations

International organisations should be aware that Hong Kong has double taxation agreements with over 40 countries, with many more to be signed in the future. We keep up to date with all regulations to help your business navigate any compliance and regulatory hurdles.

At OLN Accounting Services, we help clients manage their tax exposure, providing innovative solutions that comply with relevant local tax rules. Our exposure to dozens of jurisdictions worldwide enables us to maximise tax advantages for your firm.

Look to us for

• Advice on appropriate taxation rules
• Filing of annual returns with the IRD
• Handling tax questions from the IRD and ensuring that your business is in good standing
• Handling objections to tax assessments levied by tax authorities