In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The financial year starts on 1st April and ends on 31st March.
- Accounting Standards
Not having the force of law, the notification elaborated by the HK Public Accountants Association (Financial Reporting Standards Committee) determines the guideline to be considered for the interpretation and application of the accounting principles and which should be followed in this regard by the members of the profession.
Hong Kong Accounting Standards (HKAS)
- Accounting Regulation Bodies
HK Institute of Certified Public Accountants
- Accounting Reports
BALANCE SHEET: on December 31 n, to be compared December 31 n-1 FIXED ASSETS CURRENT ASSETS Stocks Marketable securities Debtors Cash CURRENT LIABILITIES Obligations under finance leases Proposed dividends Taxation Creditors Loans and bank overdrafts NET CURRENT ASSETS LONG TERM LIABILITIES Deferred taxation Obligations under finance leases Bank loans SHAREHOLDERS EQUITY Share capital Reserves Retained profits PROFIT AND LOSS ACCOUNT: 1) Turnover 2) Profit before tax 3) Tax 4) Retained profits at the beginning of the fiscal year 5) Dividends 6) Retained profits at the end of the fiscal year.
- Publication Requirements
- Professional Accountancy Bodies
Hong Kong Institute of Certified Public Accountants
The Society of Chinese Accountants and Auditors
Association of Chartered Certified Accountants HK
- Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact KPMG, Ernst&Young, Pricewaterhouse coopers.
- Accounting News
Accounting news in HK
- Company Tax
- Tax Rate For Foreign Companies
Only incomes generated in HK are subjected to taxation (rate of 16.5% and 15% for unincorporated businesses).
- Capital Gains Taxation
Long term capital gains are not taxed in Hong Kong.
- Main Allowable Deductions and Tax Credits
Expenses are deductible.
- Other Corporate Taxes
Stamp duties, registration fees for trading activity, taxes on occupation of landed properties.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
||East Asia & Pacific
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
||Progressive rate from 2% to 17%
|From HKD 0 to 40,000
|From HKD 40,000 to 80,000
|From HKD 80,000 to 120,000
|More than HKD 120,000
- Allowable Deductions and Tax Credits
The allowances are meant only for persons who have chosen the progressive taxation method.
For further information on deductions, visit the website of the tax authority.
- Special Expatriate Tax Regime
No specific tax regime for expatriate.
Nevertheless in 2012 the Hong Kong’s government introduced a 15% Buyer’s Stamp Duty for residential flats purchase, concerning all non-permanent-resident and corporate buyers.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
- Withholding Taxes
Dividends: 0, Interest: 0, Royalties:4,5% / 15% (for nonresident individuals ) 4,95% / 16,5% (for nonresident companies).
Learn more about Taxes and Accounting in Hong Kong on Globaltrade.net, the Directory for International Trade Service Providers.
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
- The Language of Justice
English or Cantonese, or in both the languages at the same time.
- Recourse to an Interpreter
- Sources of the Law and Legal Similarities
Hong Kong's judicial system continues to be based on the English Common Law and the Rules of Natural Justice of Great Britain. In order to maintain a strong autonomy on the judicial system, HK-SAR shows its attachment to the primacy of the "rule of law" as the fundamental law. The judicial system works independently of the system of mainland China.
- Checking National Laws Online
Bilingual Laws Information Database
Basic Law full text
Learn more about Lawyers and Legal in Hong Kong on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
- Opening Hours and Days
Banks close on Saturday and Sunday. Government offices close on Saturday and Sunday.
Stores close at 2200 hrs. They remain open sometimes even on Saturday and Sunday. Companies close at 1800 hours.
|Lunar New Year
||4 days, date varies every year based on the moon (between mid-January and mid-February).
||The Friday before Easter (in March or April)
||in March or April
|Ching Ming Festival
|Tuen Ng Festival
||In May or June
|HKSAR Establishment Day
|Lu Pan Birth Anniversary
||In September or October
|Cheung Yeung Festival
- Holiday Compensation
When a public holiday falls on a Sunday or on the same day as another holiday, the next day is a day off. Sometimes the government will select the day before as an off-day.
Periods When Companies Usually Close
|Chinese New Year
||one week in January or February
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Last Updates: October 2014