Tel: (852) 2528 9298

2nd Floor, Jonsim Place, 228 Queen’s Road East, Wanchai, Hong Kong

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Tax Rates

Levied on profits arising in or derived from Hong Kong.

Corporations pay 16.5%
Proprietorships/Partnerships pay 15%

Depreciation Allowance

Computer Hardware and software ( 100%)
Plant & Machinery ( 10% - 30% )

Example:

Category Initial Annual
Air Conditioning Plant/Lifts 60% 10%
Furniture and Fixture 60% 20%
Automobile 60% 30%

Leasehold Improvement: If moveable, can be regarded as furniture or fixture, otherwise, treated as part of the building and only entitled to Rebuilding Allowance.

There are exceptions to the rule. Please contact us for further details.

Example: Rebuilding Allowance on Construction Cost

Category Initial Annual
Industrial 20% 4%
Commercial - 4%

Other Considerations

Capital Gains Not taxable
Dividends Not taxable
Losses: The tax losses may be carried forward indefinitely, subject to restrictions where change in shareholding is for the sole and dominant purpose to utilize tax losses.
Royalties If recipient is an unconnected non-resident:
i)Proprietorships/Partnerships ~ 4.5%, otherwise ~ 15%
ii)Corporation ~ 4.95%, otherwise ~ 16.5%
iii)Charitable Donation: Limited on 35% of assessable Profits.