The usual profit tax rate for a company registered in Hong Kong is 16.5%. As of today, this rate is valid from 2.000.000 HKD. From 1HKD to 1.999.999HKD, the rate is only 8,25%.

In order to determine, the amount of profit subject to tax in Hong Kong, you need by law to hire an accountant and an auditor. The taxation in Hong Kong being territory based, there is as well a possibility for your business being recognized as offshore.

In this case, you do not need to pay profit tax in Hong Kong. In order to confirm this characteristic, you need to go through the audit process and deal with the offshore claim process. Having your company business recognized as offshore in Hong Kong is not automatic.

Moreover, in some cases, you do not need to be recognized as offshore not to pay tax. As an example, this year and referring to fiscal year 2019-2020, every profit generating less than 20.000 HKD in tax during is not taxable. If you need further assistance with you accounting and audit, feel free to contact us.