香港稅務(wù)小冊(cè)子

1、Hong Kong Tax Guide 2020Contents HYPERLINK l _bookmark1 Investment basics 2 HYPERLINK l _bookmark2 Overview of Hong Kong taxation 4 HYPERLINK l _bookmark3 Taxation for businesses : profits tax 5 HYPERLINK l _bookmark4 Compliance for profits tax 8 HYPERLINK l _bookmark5 Withholding tax 9 HYPERLINK l

2、_bookmark6 Taxation for individuals : salaries tax 10 HYPERLINK l _bookmark7 Compliance for salaries tax 13 HYPERLINK l _bookmark8 Transfer pricing rules 14 HYPERLINK l _bookmark9 Anti-avoidance rules 14 HYPERLINK l _bookmark10 Other taxes / levies 15 HYPERLINK l _bookmark0 Tax treaties 171Investmen

3、t basicsCurrency - Hong Kong Dollar (HKD)Foreign exchange control - Hong Kong does not impose controls on foreign exchange. There are no minimum requirement or restrictions on foreign investments. Foreign investors are allowed to invest into or repatriate capital or convert and remit profits and div

4、idends derived from direct investments. Investors can bring their capital into Hong Kong through the open exchange market and remit the repatriated funds in the same way.Tax authorities - Inland Revenue Department (IRD)Accounting principles/financial statements - Hong Kong Financial Reporting Standa

5、rds apply. Hong Kong-incorporated companies must prepare annual audited financial statements. Public companies must file annual financial statements with the Companies Registry. Private companies are not required to file annual financial statements with the Companies Registry, but must maintain prop

6、er accounting books and records.Audited financial statements must be submitted to the IRD with the annual profits tax return (except for small corporations).Hong Kong Tax Guide 2020Principal forms of business entity - The principal forms of business are limited liability company (including public an

7、d private company), partnership, sole proprietorship and branch or representative office of a foreign corporation.Limited company is the most common form of business entity in Hong Kong. Most limited companies incorporated in Hong Kong are private companies limited by shares. A private limited compa

8、ny in Hong Kong requires at least one director who is a natural person and one company secretary. A non- Hong Kong resident can be appointed as a director. There is no requirement for shareholders to be Hong Kong residents.A branch of a company that is incorporated outside Hong Kong is not a separat

9、e legal entity from the parent. A representative office of a foreign company cannot engage in profit-making activities and can only fulfill limited functions.Registration - All businesses engaged in activities in Hong Kong, whether or not incorporated locally, must obtain a Business Registration Cer

10、tificate from the Hong Kong tax authorities (i.e. IRD) within one month from the starting of business.In addition to Business Registration, a new Hong Kong incorporated company must obtain a Certificate of Incorporation from the Companies Registry. A company that is incorporated outside Hong Kong an

11、d establishes a place of business in Hong Kong must register with the Companies Registry as a Registered Non-Hong Kong Company within one month of establishment.Hong Kong offers a one-stop company incorporation and business registration service. Business Registration Certificate can be issued togeth

12、er with the Certificate of Incorporation, normally within one hour for online applications.Overview of Hong Kong taxationProfitsTaxDirectTaxSalariesTaxProperty TaxThere are three main types of tax levied under the Inland Revenue Ordinance (IRO), including profits tax, salaries tax and property tax.M

13、ajor levies include stamp duty, customs and excise duty, betting duty and hotel accommodation tax.Stamp DutyBetting DutyLeviesCustoms &Excise DutyHotelAccommodation TaxCharacteristics of Hong Kong tax system:Simple tax systemTerritorial source conceptNo tax on dividendsNo sales tax, consumption tax

14、or value added taxNo withholding tax on dividends and interestsNo capital gains taxNo estate dutyHong Kong Tax Guide 2020Taxation for businesses :profits taxPersons chargeable - Corporations, partnerships, trustees and bodies of persons carrying on a trade, profession or business in Hong Kong are su

15、bject to tax on Hong Kong-source profits (excluding profits arising from the sale of capital assets). Foreign companies (including branches of foreign companies) carrying on business in Hong Kong and deriving Hong Kong-source income are treated in the same way as domestic companies.Basis - Hong Kong

16、 operates a territorial system of taxation, with tax levied on income arising in or derived from Hong Kong. Only Hong Kong-source income is subject to profits tax. Branches are taxed in the same way as corporations.Rate - The statutory tax rate is 16.5% for corporations and 15% for unincorporated bu

17、sinesses. A two- tiered profits tax rates regime applies: 8.25% for corporations (7.5% for unincorporated businesses) on the first HKD 2 million of assessable profits, and 16.5% for corporations (15% for unincorporated businesses) on the remainder of assessable profits. To avoid abuse of the two-tie

18、red tax regime, each group of connected entities can nominate only one entity to apply the two-tiered tax rates.Assessable Profits Tax Rate Corporation Unincorporated Business First HKD 2 million 8.25% 7.5% Remainder 16.5% 15% Where a partnership has both corporate and non-corporate partners, profit

19、s tax will be chargeable on the first HKD 2 million of assessable profits at the lower rate of 7.5% (for non-corporate partner) and 8.25% (for corporate partner), apportioned in accordance with their profit sharing ratios.Taxable income - Hong Kong-source income (excluding profits arising from the s

20、ale of capital assets) is subject to profits tax. In determining the source of profits, Hong Kong generally applies the operations test, which involves identifying the activities that are effective in generating the profits and the location where these activities are carried out.Certain types of rec

21、eipt that may not be caught by the general profits tax charging rules are specifically brought into the Hong Kong tax net via other provisions in the IRO, that deem the sums to be taxable, e.g., royalties for the use of various types of intellectual property (IP) in Hong Kong (see “Royalties” under

22、“Withholding tax”).Dividends - Dividends are generally not taxable. Dividends paid from profits that already have been subject to Hong Kong tax are not taxable in the hands of shareholders. Dividends received from foreign companies are not taxable because they are foreign-source income.Capital gains

23、 - Hong Kong does not tax capital gains. However, gains on the disposal of assets may be subject to profits tax if the disposal constitutes a transaction in the nature of trade (determination based on facts and actual circumstance).Deductions - Expenses generally are deductible to the extent they ar

24、e incurred in the production of profits that are chargeable to tax. However, expenditure of a capital nature generally is not deductible.Interest deduction limitations - Although there is no thin capitalization or similar rule in Hong Kong, there are specific rules governing the deduction of interes

25、t expense. For example, no deduction is allowed for interest paid to a non-financial institution if the recipient is not subject to tax in Hong Kong on the interest, except where the interest is paid to an overseas associate by a taxpayer that carries on an intragroup financing business. There also

26、are some anti-avoidance measures, such as a “secured-loan test” and an “interest flow-back test.”Incentives - There are a number of preferential tax regimes to encourage different industries or activities, including the following:Enhanced deduction for research and development (R&D) expenditure;Tax

27、exemption for onshore and offshore funds;Concessionary tax rate for corporate treasury centers ;Tax exemption for gains from qualified debt instruments;Concessionary tax rates for reinsurance and captive insurance businesses, direct insurers of selected general insurance business and general reinsur

28、ers of a specified insurer and concessionary treatment to selected insurance brokerage businesses; andConcessionary tax rates for aircraft leasing businesses, ship lessors and ship leasing managers.Corporate treasury centers Concessionary tax rate 8.25%Qualifying debt instruments Profits tax exempti

29、onFundsProfits tax exemption for onshore and offshore fundsR&DEnhanced deduction for qualifying R&D expenditure 300% / 200%Insurance Concessionary tax rateAircraft leasingShip leasingConcessionary tax rate 0% / 8.25%8.25%Concessionary tax rate 8.25%Hong Kong Tax Guide 2020Losses - Tax losses may be

30、carried forward indefinitely and offset against future taxable profits of the same taxpayer. Specific anti-avoidance legislation prevents the purchase of a loss company for the sole or main purpose of obtaining a tax benefit. Losses cannot be carried back or transferred to other taxpayers.Foreign ta

31、x relief - Hong Kong operates a territorial tax system under which only income/profits sourced in Hong Kong are taxable. Double taxation therefore typically is not a significant issue in Hong Kong. Nevertheless, double taxation generally can be eliminated by tax credits under a tax treaty or unilate

32、ral deduction where the prescribed conditions are met.Exit tax - Hong Kong does not tax capital gains or capital repatriation. However, gains on the disposal of assets may be subject to profits tax if the disposal constitutes a transaction in the nature of trade (a factual determination).Compliance

33、for profits taxTax year Tax is charged on the assessable profits for a year of assessment (YOA) (starting from 1 April of a year to 31 March of the subsequent year). The basis period of a YOA is generally the accounting period ending in the YOA.Filing The IRD issues profits tax returns annually, usu

34、ally on the first business day of April, for companies to report the information required in the return for the accounting year ended in the previous YOA and supported by audited financial statements (where appropriate). The tax return must be filed within the prescribed time limit, usually within o

35、ne month from the date of issue. If a tax representative is appointed, the tax return filing due date may be extended under the “block extension” scheme. Hong Kong does not allow the filing of consolidated returns and there are no provisions for relief of group losses. Companies in the same group mu

36、st file their own tax returns and pay tax separately.Payment Assessments are issued by the IRD when the tax returns are filed. Upon receiving the assessments, companies (and unincorporated businesses) are required to pay a provisional profits tax for the subsequent YOA, generally based on the preced

37、ing years profits. This payment is used to offset against the final profits tax for that subsequent YOA. Any excess payment is applied against the provisional profits tax payable for the following year.Penalties A surcharge or penalty applies for failure to comply with the filing and payment obligat

38、ions. Rulings Taxpayers may request an advance ruling from the IRD on the application of provisions ofthe IRO. Advance pricing arrangements (APAs) also are possible.Substantial activities requirements To qualify for certain preferential tax regimes (e.g. aircraft leasing, corporate treasury center,

39、captive insurer, reinsurer, general insurance business, insurance brokerage business, ship leasing, etc.), there are threshold requirements for the level of activity in Hong Kong. These thresholds are based on various indicators such as the number of full-time employees in Hong Kong engaged in the a

40、ctivity and the amount of associated operating expenditure incurred in Hong Kong.Disclosure requirements Hong Kong is one of the jurisdictions that has committed to the adoption of the OECD common reporting standard between tax authorities. The relevant rules require Hong Kong financial entities to

41、report to the IRD information on financial accounts held by non- residents located in countries that have agreed to an exchange of information on tax matters in accordance with bilateral competent authority agreements or a multilateral competent authority agreement under the Convention on Mutual Adm

42、inistrative Assistance in Tax Matters.Hong Kong Tax Guide 2020Withholding taxDividends There is no withholding tax on dividend distributions from a Hong Kong entity to a resident or non-resident.Interest There is no withholding tax on interest payments from a Hong Kong entity to a resident or non-re

43、sident.Royalties Royalties for the use of, or the right to use, most types of IP in Hong Kong, or where the royalty payments are deductible for the payer, are deemed to be taxable in Hong Kong. The amount deemed taxable is 30% of the gross amount of the royalties paid, resulting in an effective rate

44、 of 4.95% (for a corporation) in general. If a royalty is paid to an affiliated non-resident and the IP previously was owned by a person carrying on business in Hong Kong, 100% of the royalty is deemed to be taxable, resulting in an effective rate of 16.5% (for a corporation). The two-tiered tax rat

45、es regime also applies to a non-resident royalties recipient.The payer of royalties to a non-resident is required to withhold the tax and remit that amount to the IRD.Taxation for individuals :salaries taxPersons chargeable Any person, including locally employed individuals and expatriates, who deri

46、ves Hong Kong-source employment income, is subject to salaries tax.A person under a non-Hong Kong employment is only assessed on the income attributable to the services rendered in Hong Kong. The income attributable to services rendered outside Hong Kong is not chargeable to salaries tax. If that no

47、n-Hong Kong resident visits Hong Kong for no more than 60 days in a tax year (from 1 April to 31 March of the following year), he / she is not liable to salaries tax on the entire employment income.Fees received by directors of a company, the control and management of which is exercised in Hong Kong

48、, are chargeable to salaries tax irrespective of where the director resides.Basis Hong Kong operates a territorial system of taxation. Individuals are subject to salaries tax on income from employment, an office or a pension derived from Hong Kong. The source of employment income is determined by th

49、e place where the employment contract is negotiated, concluded and enforceable; the residence of the employer; and the place where the employees remuneration is paid. All income from Hong Kong employment is regarded as sourced in Hong Kong. Income from non-Hong Kong employment is regarded as sourced

50、 in Hong Kong if it is attributable to services rendered in Hong Kong.Rates Individuals are taxed at progressive rates on their net chargeable income (i.e. assessable income less deductions and allowances). The marginal tax rates range from 2% to 17% with a cap at the standard rate of 15% on assessa

51、ble income (i.e. taxable income without the deduction of allowances).Net chargeable income (after allowances and deductions) Rate (for YOA 2018/19 onwards) Up to HKD 50,000 2% HKD 50,001 HKD 100,000 6% HKD 100,001 HKD 150,000 10% HKD 150,001 HKD 200,000 14% Over HKD 200,000 17% Hong Kong Tax Guide 2

52、020Taxable income Individuals are taxed on their total Hong Kong income from employment, less deductible expenses (e.g. charitable donations, self-education expenses) and allowances. Taxable income includes salaries, wages, directors fees, commissions, bonuses, awards, gratuities, allowances and oth

53、er benefits derived from employment. All pensions should be reported as assessable income.Dividends, interests or capital gains earned by individuals are not subject to salaries tax. However, gains realised by the exercise of, or assignment or release of share options obtained from holding an office

54、 or employment are taxable. Any income received from the employer as an allowance, perquisite or fringe benefit are also taxable. These forms of income include cash allowances, liability of employees discharged by employers, convertible benefits, education benefits and holiday journey benefits. Seve

55、rance payments and long-term service payments that must be paid under the Employment Ordinance are not subject to salaries tax. Any payment exceeding the amount calculated under the Employment Ordinance may be subject to salaries tax.Housing benefit The taxable value (or rateable value, if lower) of

56、 a rent-free residence provided by an employer or its associates is presumed to be 10% (4% or 8% for hotel and hostel accommodation, depending on the number of rooms) of the employees income after deducting outgoings and expenses (excluding expenses of self-education). This treatment also applies to

57、 reimbursement of the rent paid for the employees accommodation, subject to proper control exercised by the employer.Deductions Expenses are allowable if they are wholly, exclusively and necessarily incurred to produce income subject to salaries tax, including:Self-education expenses up to HKD 100,0

58、00Home loan interest up to HKD 100,000Elderly residential care expenses up to HKD 100,000Mandatory contributions to the Mandatory Provident Fund (MPF) or Recognized Occupational Retirement Scheme, up to HKD 18,000Donations exceeding HKD 100 to approved charities, up to a maximum of 35% of assessable

59、 income less other deductionsQualifying premiums up to HKD 8,000 paid by taxpayers or their spouse as a policyholder of a voluntary health insurance scheme policy for an insured personQualifying annuity premiums paid by taxpayers or their spouse as a policyholder of a qualifying deferred annuity pol

60、icy under which annuity payments are receivable by an annuitant and MPF voluntary contributions paid, up to a maximum of HKD 60,000Allowances Income subject to salaries tax is reduced by allowances before the tax rates are applied, including:Allowances (for the YOA 2019/20) HKD Basic allowance (for