Hongkong, an international finance center, is known as a free trade port. Hongkong remains competitiveness with its low and simple taxation. In this case, entrepreneurs choose to start their business just right here in Hongkong.
Lam Cheng Yuet-ngor, HK Chief Executive, promised in her speech during February this year, that there would be tax cuts after her election.
And now, the implementation seems to be in the air!!!
A Huge Boost
As you see in the form above, the tax rate of the first 2 million HKD annual profits is expected to be reduced to 10%! Surprisingly, it is estimated that small and medium enterprises in HK will benefit from tax reduction for at least 40% less than before! Hurray!!!
Simpliest Tax System
Under CRS, many entrepreneurs in China choose to establish their companies in HK because of lower and simpler taxation, comparing to tax system in Chinese mainland. Furthermore, only corporate incomes from HK are calculated in the payable tax under HK tax system.
Advantages of HK Company
Besides from lower tax rate, there are also many reasons for establishing HK companies:
❶ HK company is the most popular offshore company.
❷ In foreign trade, only corporate incomes from HK need to pay tax.
❸ Opening HK bank account in the name of HK company makes it more convenient to receive USD.
❹ The company can advertise itself as an HK Corporate, which appears to be more internationally recommended and popular.
❺ A proper taxation plan for HK company helps to avoid unnecessary tax and risk.
So, don’t be hesitated, it’s time to establish your HK company!
Any question about HK bank account or establishing HK company, welcome to contact HACOS!
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