Hong Kong is open to trade and has an open door for policy trading. It thus implies that Hong Kong does not charge tariffs on the exporting or importing of goods. Besides, the importation and exportation licensing in Hong Kong are kept at a minimum rate.
The labour legislation of Hong Kong is in-line with those of the international laws, and it has implemented several conventions from the International Labor Organization. The labour law has facilitated the entry of highly skilled financial professionals into the Hong Kong job market.
Hong Kong’s corporate taxation system is probably the main reason that attracts many foreign investors conducting business in Hong Kong. It is low and there is zero tax on profits earned overseas for Hong Kong based businesses. The taxation system of Hong Kong is simpler and clearer to help both foreign and local investors operate with ease. Some of the reasons why the Hong Kong business taxation system is simpler is the fact that there are no capital gains tax, no VAT, no taxation on dividends, estate duty and inheritance are not subject to taxation. Furthermore, there are no payroll taxes and profits that are derived outside of Hong Kong. Nonetheless, the following are taxed: salaries, gains, property, and stamp duty.
Annual compliance refers to the yearly procedures required to maintain your financial records with the Hong Kong government. This includes statutory returns, annual general meetings and associated minutes, as well as ensuring your personnel records are updated with the Registrar of Companies.
Navigating the taxation regulations and maintaining annual compliance in Hong Kong requires experience and familiarity with the inner workings of the complex system. Fortunately, Paul Hype Page has an established presence working in Hong Kong as accountants, and we will assist your business in ensuring you fulfill the requirements of doing business in Hong Kong.