- Estate Duty
- Stamp Duty
- Betting Duty
- Capital Duty
- Import and Excise Duties
Hong Kong adopts a territorial source principle of taxation. Only profits that have a source in Hong Kong are taxable here. Profits sources elsewhere are not subject to Hong Kong Profits Tax. The standard tax rate is 17.5% for corporations and 16% for other businesses, which relatively low, compared with other developed countries.
Unlike most other countries such as Australia and UK, Hong Kong does not impose a capital gains tax. Besides, dividend income is also exempt from profits tax.
| Tax Basis | According to accounting profits and subject to adjustments under the tax code |
|---|---|
| Profit Tax Rate | (1) Normal rate (for the year of assessment 2003/04) - Corporations : 17.50% - Unincorporated Businesses : 15.50% (2)Normal rate (for the year of assessment 2004/05) - Corporations : 17.50% - Unincorporated Businesses : 16.00% |
| Losses | Losses can carry forward subject to restrictions |
| Capital Gains | Not taxable |
| Dividends income | Not taxable |
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