The Hong Kong Government is committed to support SMEs and startups to help realize their vision and take their business to the next level, providing an appealing tax environment for foreign investors.
Because of its outstanding financial infrastructure and promising investment climate, there are many incentives to encourage business investments.
Hong Kong has lower tax rates than most other Asian countries, there is no tax on: –
The following sums are excluded from the assessable profits: –
A person is exempt from payment of profits tax in respect of the following sums: –
A Double Tax Agreement (DTA) is a bilateral agreement between two countries that seek out to avoid the double taxation of an income.
There are several substantial primary allowances offered, for capital expenditure on prescribed assets, by the Government, including certain plants or machinery. Some significant allowances provided by Hong Kong’s Government include:
Capital expenditure on environmental protection vehicles, machinery & installations benefits from a primary allowance of 20% in the year of assessment in which the capital expenditure was incurred. The remaining expenditure is deductible on a straight-line basis of 20% a year for the succeeding 4 years.
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