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Taxes in Hong Kong
Hong Kong is the ideal place to do business in Asia. Not only because of location, but also because of the welcoming business environment, the support for companies and start-ups and the attractive taxation regime. Taxes in Hong Kong are fewer than in other business locations and allowances and deductions are also applicable.
Hong Kong has a profits tax, a salaries tax and a property tax. No VAT or sales tax are applicable here, as well as no withholding tax, capital gains tax or dividends tax. Requirements for submitting tax returns do exist but the process is straightforward.
Although the taxation regime is very permissive, there are still some ways in which business owners can apply strategies for tax minimization in Hong Kong. With the right help, foreign business owners in Hong Kong can make the most out of the applicable deductions for companies. Our lawyers in Hong Kong are a team of dedicated professionals who are ready to help you minimize taxes.
Tax minimization vs. tax evasion
Tax minimization or tax avoidance represents the legal use of the existing tax rules to minimize due payments. It is a different process from tax evasion, which is the illegal avoidance of paying taxes through different omissions or measures, like submitting false income statements.
Our law firm in Hong Kong specializes in legal tax minimization strategies so that you and your company can avoid paying unnecessary taxes. Only by knowing all the applicable regulations for tax payments can our lawyers in Hong Kong devise the best tax minimization strategies. With the help of our lawyers you will learn everything about paying taxes in Hong Kong, submitting the annual financial statements and even wealth management.
Tax optimization in Hong Kong
Opening a trading company is a common way to decrease taxes in Hong Kong. Alternatively, instead of a trading company, businesses can also use the services of a hired agent that will represent the company and channel the sales. Financial transactions between companies in Hong Kong can also be thoroughly planned so that the profits remain in offshore companies. Business owners in Hong Kong can also use the Parent-Subsidiary taxation regime for certain advantages and tax reductions.
Please contact our Hong Kong lawyers for more information about tax minimization strategies in Hong Kong.