Foreign currency commissions and fees received from licenses pertaining to music, movies, income from patents, publishing, rights to mining, consultancy services, rental income is not taxable in Hong Kong. Such income can be transferred to a deposit account in Hong Kong, or place in another country without the imposition of any tax. Thus, Hong Kong offers tax regime, which can compete offshore areas, and offers advantages for international trade and finance. You can take advantage of avoidance of double taxation for those countries with which Hong Kong has signed the relevant agreement. At the moment Hong Kong has signed an agreement on avoidance of double taxation with Belgium, and intends to enter into a network of such agreements.
Thus, the main features of the tax regime in Hong Kong the following: – Territorial tax system. No tax on income from sources outside Hong Kong – Recognition as a respectable financial center of most countries – lack of any major taxes except the income tax at a rate of 17.5% levied only on income earned in Hong Kong. – Personal tax on personal income does not exceed 16% – Interest income on deposits, opened in Hong Kong are not taxed in Hong Kong – No tax on capital gains or capital gains – No tax on dividends received from abroad – No tax on dividends sent for border. Hong Kong companies – is a serious financial instrument that needs, unlike offshore, additional costs for financial reporting. The annual report must be submitted within 42 days after the end of the year from the date of incorporation.