About Hong Kong
About the country
Hong Kong is situated in Eastern Asia, bordering the South China Sea and China. On 1, July 1997, China resumed sovereignty ending more than 150 years of British colonial rule and Hong Kong became the Special Administration Region (SAR) within the People's Republic of China.
About the economy in Hong Kong
The corporate and trust laws in Hong Kong's laws are identical to the ones of the United Kingdom and most business activities are carried out behind the vehicles of limited companies, limited partnerships, sole proprietorships and trusts. Hong Kong is a separate and active member of the World Trade Organization (WTO) and the Asia Pacific Economic Cooperation (APEC) forum.
Hong Kong is the world's ninth largest economy. There are over 970 international companies established in Hong Kong due to the fact that Hong Kong has a low tax regime, and has exceptional trading links and distinctive access to the People Republic of China, the world fastest growing economy and biggest potential market. The Government promotes a pro-business environment while controls and disclosure requirements on businesses are minimal. Corporate tax on profits directly generated in HK is only 17.5%, Dividends are exempt from taxation and there are no withholding taxes. Incorporation can take up to 4-6 weeks.
China and Hong Kong keep an independent taxation system free of intervention and a high degree of autonomy in all matters except in foreign and defense affairs until 2047.This was achieved through the Special Administrative Region
Hong Kong is highly dependent on international trade since natural resources are limited, and food and raw materials must be imported on a regular basis. Hong Kong accommodates a very sound banking system, accumulated public and private wealth, a strong legal system, an able and rigorously enforced anti-corruption regime, and virtually no public debt.
Hong Kong has one of the largest representations of international banks in the world. Licensed banks, restricted licensed banks and deposit-taking companies, which are authorized to take deposits from the general public, are the types of banks that exist in the country. Confidentiality is protected by law and therefore banks do not disclose customer details unless there is a suspicion of money laundering or other criminal activity. There are no exchange controls and money can be deposited and withdrawn without the payment of taxes at any time.
There are no capital gains taxes, no withholding taxes, no sales taxes, no VAT, and no annual net worth taxes. Tax is levied on income known as Salaries tax and employees and the self employed are required to make social insurance payments. There are also property taxes and stamp and estate duties. Taxes are imposed on business profits emanated from a trade, profession or business carried out in Hong Kong, which different from most jurisdictions which levy corporate tax on all worldwide income. Tax is charged at the rate of 17.5%.
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