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Hong Kong's Lucrative Tax Incentives for Businesses

Nestled amidst the bustling streets and towering skyscrapers of Hong Kong lies a beacon of economic freedom and opportunity. For over two decades, this vibrant metropolis has proudly held the title of the world's freest economy, drawing entrepreneurs, investors, and businesses from every corner of the globe.

At the heart of Hong Kong's allure are its enticing tax incentives and business-friendly policies. From enticing corporate tax cuts to lucrative tax holidays, the city offers a myriad of benefits aimed at fostering growth, innovation, and prosperity. These incentives not only attract businesses seeking to expand their horizons but also serve as a testament to Hong Kong's unwavering commitment to economic excellence.

The are multiple opportunities that await those bold enough to seize them:

  1. Corporate Tax Cut: Avail the two-tiered profit tax rate, slashing the corporate tax from 16.5% to 8.25% for eligible companies.

  2. Tax Deduction for Capital Expenditure: Deduct up to 60% of machinery costs from profits tax, facilitating substantial savings.

  3. Tax Holiday: Enjoy a 100% profits tax exemption on the first HKD 2 million of assessable profits for the initial five years, supporting SMEs.

  4. No VAT: Escape the burden of value-added tax, enhancing cost-effectiveness and competitiveness.

  5. Double Taxation Treaties: Benefit from agreements with 56 countries, mitigating tax complexities and ensuring fair taxation for global transactions.

  6. Free Trade Agreements: Leverage FTAs with key economies like mainland China, ASEAN, Australia, and New Zealand, streamlining trade processes and reducing tariffs.


One thing is abundantly clear: the city's allure transcends mere geography. Beyond its glittering skyline and bustling streets lies a world of opportunity, where innovation thrives, and dreams take flight.


Can Woodburn help you?

 

Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.


Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.

 

Talk to an expert


Schedule a 30-mins complimentary, no-obligation call to see how Woodburn can help you. Book a call with our Head of Business Advisory - Kristina Koehler-Coluccia.

Topics we can advise on include:

  • Company Registration

  • Cloud Accounting & Financial Reporting

  • Cloud Payroll Services

  • Tax & Audit Services

  • Recruitment

  • Employer-of-Record

  • Visa Application

  • Trademark Registration

  • Switch to Woodburn

  • Partner with Woodburn (cross referral) 

Our calls are automatically scheduled via Zoom - or via Teams, WeChat or WhatsApp upon direct request. 

Our advisory calls are available from Monday-Friday from 8am to 5pm CEST and Wednesday until 9pm CEST.

 


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Woodburn Accountants & Advisors is one of China and Hong Kong’s
most trusted business setup advisory firms

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