Hong Kong
(Special Administrative Region of the People’s Republic of China) is one of the world’s leading financial centers.
The level of economic freedom in Hong Kong is one of the highest, which is enjoyed by thousands of entrepreneurs and businessmen from all over the world. Hong Kong uses the territorial principle of taxation, that is, income received outside the country is not taxed.
Hong Kong companies register with a share capital of HK$1. To open a company, one participant (shareholder / director) is enough. The name is entered in the register in Chinese and English. Registration of a company in Hong Kong is carried out in the form of an LTD and facilitates the smooth export of goods from China to countries around the world.
Companies can conduct business both outside of Hong Kong and with domestic enterprises. In the second case, you need to pay income tax. There is an opportunity to reduce net income through a flexible system of tax exemptions, which also applies to the advantages of opening a company in Hong Kong.
The legislation provides for three types of tax calculations:
-Payroll tax in the amount of 2–17% (according to the differentiation rule).
-Income tax – it is levied on income that is received from the implementation of activities within Hong Kong. The rate is 16.5%. Dividends and capital gains are not subject to taxation.
-Property tax.