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Hong Kong Tax Overview
Hong Kong imposes three separate dierct taxes for a year of assessment which ends on 31st March. The taxes are on profits, salaries and property.
Hong Kong adopts a territorial concept of taxation, and accordingly the taxes are levied primarily on Hong Kong sourced profits and income on a current year basis except for businesses which are assessed on profits of their accounting periods.
Companies are taxed as separate entities. No group tax loss relief is available. Individuals carrying on business as sole proprietors or partners may elect for Personal Assessment which will have the effect of amalgamating their various income in a single assessment.
DOUBLE TAXATION RELIEF
Hong Kong has signed the following international double tax agreements:
- Agreements on taxation of international shipping profits:
| - Denmark | - Singapore |
| - Germany | - Sri Lanka |
| - The Netherlands | - The United Kingdom |
| - Norway | - The United States of America |
- Agreements on taxation of international airline profits:
| - Bangladesh | - Mauritius |
| - Belgium | - The Netherlands |
| - Canada | - New Zealand |
| - Croatia | - Norway |
| - Denmark | - The People's Republic of China |
| - Finland | - The Republic of Korea |
| - Germany | - Singapore |
| - Iceland | - Sri Lanka |
| - Israel | - Sweden |
| - Jordan | - Switzerland |
| - Kenya | - The United Kingdom |
| - Kuwait |
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Comprehensive double tax treaty with Belgium, effective from year of assessment 2004/05. |
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Comprehensive double tax treaty with Thailand, effective from year of assessment 2006/07. |
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Revised double tax arrangement with the People's Republic of China, effective from 1 January 2007 for the People's Republic of China and 1 April 2007 for Hong Kong. |
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Comprehensive double tax treaty with Luxembourg, effective from 1 January 2008 for Luxembourg and 1 April 2008 for Hong Kong. |
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Comprehensive double tax treaty with Vietnam, effective from year of assessment 2010/11. |
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Comprehensive double tax treaties between: (i) Hong Kong and Brunei Darussalam; (ii) Hong Kong and the Netherlands; (iii) Hong Kong and Indonesia, will be effective after completion of ratification procedures on both sides. |
There are no tax treaties with any other territories.
"Hong Kong Tax Tables" are published for clients of Baker Tilly Hong Kong.
Please click here to download "Hong Kong Tax Table" in PDF format.
For further enquiries, please contact:
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