Business Taxes Provider
CST Tax Advisors
A member firm of the CST International network, we deliver specialist tax advice and chartered accounting services to private clients, family groups and international enterprises.
CST Tax Advisors currently provides tax and accounting services to expatriates from all over the globe including Australia, the UK,Europe, the United States and other parts of Asia.
Business Taxes for Expats in Hong Kong
Hong Kong is recognised globally as one of the business and service capitals of the world.
Taxes on business in Hong Kong are based on the territorial source principle. What this means is that a business only pays tax on profits which are derived from carrying on a trade, business or profession in Hong Kong. Some other countries tax businesses based on whether the owner is a tax resident or where the management and control of the owner is located.
The current rate of taxation in Hong Kong for unincorporated businesses is a flat 15%. Companies pay tax at a flat rate of 16.5% on assessable profits.
For the assessment years 2018/2019 onwards, Hong Kong introduced a “two tiered” system which halved the tax rates for assessable profits up to $ 2 million.
Unincorporated businesses now pay tax at the rate of 7.5% on assessable profits up to $2 million and then 15% on any assessable profits over this amount. Companies pay tax at the rate of 8.25% on assessable profits up to $ 2 million and then 16.5% for assessable profits above this amount.
The advice and guidance of a Hong Kong business tax professional will most definitely assist an expat moving to Hong Kong seeking to do business.
Our E-Team member in Hong Kong can provide such advice and guidance.