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Taxation of a Limited Liability Company in Hong Kong

Updated on Tuesday 25th July 2017

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Taxation-of-a-Limited-Liability-Company-in-Hong-Kong.jpgHong Kong has a low taxation regime that applies on a territorial level. This means that companies can be taxed on their worldwide income or on their Hong Kong source income.
 
The taxation of a limited liability company in Hong Kong observes the territorial principle of taxation. A legal entity (corporation) in Hong Kong is considered a resident if it is incorporated in the city or if it is managed and/or controlled from here.
 
Our company formation agents in Hong Kong can give you complete information on how to open a Hong Kong company and what you can expect as far as tax liabilities are concerned.
 

The taxation of a Hong Kong LLC

 
The private and public limited liability companies are popular business firms in Hong Kong. because these types of companies are considered tax residents, meaning that they are incorporated in Hong Kong as per the Companies Law, they will be taxed at the standard rate.
 
The corporate income tax in Hong Kong is 16.5% and a lower rate of 15% can apply to unincorporated businesses.
 

Other taxes for companies in Hong Kong

 
Hong Kong does not impose a value added tax, a capital gains tax, a sales tax or a withholding tax on dividends and interest. Social security contributions are payable by companies in Hong Kong and a real estate tax also applies.
 
The tax year is calculated from April 1 to March 31 the next year. The filing date for tax returns is usually one month after they are issued. A provisional profits tax for the current tax year is changed. Companies in Hong Kong do not have the option to file consolidated returns. The Internal Revenue Department (IRD) is the principal tax authority in the city and it is under the administration of the Financial Services and the Treasury Bureau.
 
Hong Kong has an expanding network of double tax treaties. These are useful for foreign companies that want to establish their presence in Hong Kong you can find out more from our company formation agents in Hong Kong.
 
Limited liability companies can also benefit from tax deductions.
 
You can contact us for more information on company formation in Hong Kong and the applicable tax laws for your type of company.
 

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