The latest from China & Hong Kong

A Hong Kong company is more than a low headline tax rate. Used well, its growing network of double tax treaties can reduce withholding taxes and the overall tax cost of doing business across borders. Beyond the headline rate Most people know Hong Kong for its low profits tax rate, the absence of tax on capital gains and no withholding tax on dividends paid out. Those features are real and valuable. But for a group operating across borders, some of the most useful planning com

Hong Kong has enhanced the tax concession for corporate treasury centres. For groups that manage financing and cash centrally, the case for basing that function here has strengthened. A concession worth a second look Hong Kong has long offered a concessionary profits tax rate to qualifying corporate treasury centres, the entities that groups use to manage financing, liquidity and risk across their operations. The regime has now been enhanced as part of a broader action plan t

The global minimum tax has arrived in Hong Kong. For large multinational groups, a 15% floor now applies, and the compliance obligations that come with it are already live. The floor is now in place The global minimum tax, developed under the OECD Pillar Two project, sets a floor of 15% on the effective tax rate paid by large multinational groups. Hong Kong has moved to implement it, together with a Hong Kong minimum top-up tax that ensures any shortfall to the 15% floor is c

Hong Kong offers a concessionary tax rate on income from qualifying intellectual property. If your company earns from patents or other eligible IP, you may be paying more tax than you need to. A lower rate hiding in plain sight Hong Kong already has an attractive profits tax rate. What fewer companies realise is that income from qualifying intellectual property can be taxed at a concessionary rate well below the standard one, under the territory’s patent box regime. For an I

Hong Kong is bringing crypto-asset transactions into its automatic tax reporting system. If your company holds, moves or provides services around digital assets, the time to prepare is before the framework takes effect, not after. What is changing Hong Kong has moved to adopt the OECD Crypto-Asset Reporting Framework, known as CARF, through an amendment bill to the Inland Revenue Ordinance. The framework extends the same automatic exchange of tax information that already app

If you are a director of a Hong Kong company, the law holds you personally responsible for its financial statements. Not your accountant, not your auditor, not the person who keeps the books. You. This is one of the most misunderstood points in Hong Kong company law, and misunderstanding it is exactly how directors end up exposed. Where the responsibility comes from The Companies Ordinance places the duty to prepare annual financial statements squarely on the directors. Under

In Hong Kong, preparing annual financial statements is not a matter of good practice or investor preference. It is a legal duty written into the Companies Ordinance, and it falls on the company’s directors personally. Many founders treat the accounts as something the auditor produces once a year. The law sees it differently: the accounts are your responsibility, and the auditor merely reports on them. The legal basis: section 379 Under section 379 of the Companies Ordinance (

Kristina Koehler-Coluccia explains what offshore tax status means for a Hong Kong company, the eligibility criteria for claiming an exemption, the documentation you need and how to engage with the Inland Revenue Department.

Hong Kong's territorial tax system remains one of its defining attractions: income sourced outside Hong Kong can sit outside the profits tax net. But for any company that belongs to a multinational group, the phrase 'offshore, therefore tax-free' no longer stands on its own. The Foreign-Sourced Income Exemption (FSIE) regime has, over successive refinements, turned a source-based assumption into a substance-based test, and the scope of what it catches has widened materially.

Hong Kong’s network of Comprehensive Avoidance of Double Taxation Agreements (DTAs) continues to expand, reinforcing the city’s position as a leading international business and financial centre. As of 2026, Hong Kong has reached a new milestone in the development of its treaty network, with additional agreements signed, several entering into force, and further negotiations underway. For international businesses using Hong Kong as a regional headquarters, holding structure, or

As the Hong Kong Inland Revenue Department deadline approaches, a recurring pattern has emerged across the market. Many companies are delaying their tax filings until the final weeks before submission. While this may appear manageable in the short term, last-minute preparation significantly increases compliance risk. For companies operating in Hong Kong, including holding structures, startups and non-operating entities, timely tax planning is no longer optional. It is a core

Hong Kong continues to refine its position as one of the world’s most business-friendly jurisdictions. For companies expanding into Asia or strengthening their regional footprint, the city’s recent tax policy shifts underscore a clear objective: maintain competitiveness while aligning with emerging global standards. For foreign investors, understanding how these changes work in practice is essential for strategic planning in 2026 and beyond. A Evolving Tax Environment Designe

Hong Kong remains a leading jurisdiction for tax-efficient regional and international operations. Its straightforward tax regime, competitive rates and extensive treaty network continue to attract companies seeking stability and clarity. Yet the regulatory environment is shifting. Global tax reforms, enhanced substance requirements and evolving guidance on offshore claims mean tax planning must be more intentional than ever. For investors and expanding businesses, the questio

Hong Kong’s extensive network of double taxation treaties (DTAs) continues to strengthen its position as a leading international business hub. These agreements reduce tax barriers for companies engaged in cross-border trade, investment, and regional management activities. As global tax standards evolve and international cooperation deepens, Hong Kong’s treaty network is expanding both in scope and complexity. For entrepreneurs, SMEs, and multinational groups, understanding th

Hong Kong remains one of Asia’s most competitive tax jurisdictions, but the landscape is shifting. International standards, cross-border tax transparency, and the ongoing implementation of global tax reform initiatives are reshaping how entrepreneurs and SMEs must plan for 2026 and beyond. These changes do not diminish Hong Kong’s strengths, but they do require closer attention to compliance, documentation, and strategic structuring. Understanding the direction of travel is e

Hong Kong continues to position itself as one of Asia’s most attractive destinations for foreign investment. Its straightforward tax system, competitive rates, and expanding network of international agreements make it a strategic choice for entrepreneurs, multinational groups, and SMEs looking to establish or grow their regional operations. As global tax reform moves forward and economic policies evolve, investors in 2026 will find that Hong Kong’s incentive landscape offers

For companies incorporated in Hong Kong, compliance with annual filing obligations is essential to maintain good standing with the Companies Registry. One of the key requirements is the submission of the Annual Return (Form NAR1). This document provides up-to-date information about a company’s structure and ensures transparency in the city’s corporate governance framework. What Is the NAR1 Annual Return? The NAR1 is a statutory filing that every private limited company, excep

When establishing and running a company in Hong Kong, one of the key legal responsibilities for employers is ensuring full compliance...

For companies operating in Hong Kong, preparing and submitting annual audit reports is not just a best practice—it is a statutory obligation. Understanding the requirements around audit reports is essential for maintaining compliance, building trust with stakeholders, and ensuring smooth business operations. Who Needs to File an Audit Report in Hong Kong? All Hong Kong-incorporated companies, whether they are actively trading or not, are required under the Hong Kong Companies

Hong Kong continues to be one of Asia’s most dynamic and attractive markets for international business. With its pro-business...