Exchange Controls

There are no exchange control restrictions in Hong Kong.

Corporate Tax

Basis. The distinction between resident and non-resident companies is not relevant (except in very limited cases) as generally only Hong Kong source profits are subject to tax.

Rates. Profits tax payable by Hong Kong and foreign companies is 17.5%. Profits tax for unincorporated bodies is 16%.

Personal Tax

Basis. Resident and non-resident individuals are taxed on their income earned in Hong Kong.

Rates. A salary tax is imposed on all income of individuals derived in or from Hong Kong at a rate of 16%.

Withholding Tax

There is no withholding tax on dividends and interest. Hong Kong has no tax treaties with other countries.

Capital Gains Tax

There are no general capital gains tax provisions. Capital gains may fall under the profits tax if the capital transaction is speculative in the course of the business.

Social Security Contributions

There is no formal requirement for the collection of social security or superannuation benefits.

Other Taxes

	Property tax is payable by the owners of land or buildings situated in Hong Kong at 16% of the actual rental income from such land or buildings, less an allowance of 20% for repairs and maintenance. If a corporation carrying on business in Hong Kong occupies or has income from buildings, there will be an exemption from property tax and profits tax will be payable on the net income from rents.
	Estate Duty is no longer chargeable in Hong Kong in respect of estates passing on the death of an individual.
	Stamp Duty is levied on assignments of immovable property on a sliding scale from HK$100 to 3.75%. Transfers of stocks and shares are levied 0.2%.
	Excise Duties are levied on certain categories of goods including alcoholic beverages, tobacco, hydrocarbon oils, motor vehicles, cosmetics and medicines.
	Capital Duty is HK$1 for every HK$1,000 of authorized share capital and the amount in any share premium account.

Normal Tax Year End

31 March