Taxes & Offshore Income
Businesses are subject to 16.5% profit tax while individuals are subject to maximum 15% income tax. At the same time, offshore income (sourced overseas), can be exempted from tax deductions.
What types of income are taxed in Hong Kong?
Hong Kong companies doing business overseas can make an offshore claim to avoid paying tax on profits derived offshore. However please note that a number of factors are taken into account. Whether the company has any clients in Hong Kong, office in Hong Kong or employees in Hong Kong are just some of the factors considered.
2. Salaries Tax
A local resident, who generates profit/income overseas, is not subject to tax in Hong Kong. However a non-resident working for a Hong Kong company may be subject to income tax in the city.
Despite levying the above taxes, Hong Kong is generous and frees its people from capital gains tax, dividends tax, sales tax, and services tax.