Accounts, Banking and Taxation in Hong Kong
Accounts
Business entities in Hong Kong, whether incorporated or unincorporated, are required to maintain proper books of accounts and prepare audited accounts on an annual basis.
Whilst many jurisdictions use December 31 as the year-end for preparing their accounts, many companies in Hong Kong use March 31 as their year end, to coincide with the Government's fiscal year-end. However, you are free to set your own year-end for preparing your accounts.
If you should require assistance in preparing your accounts or seeking a suitable auditor for your needs we shall be pleased to recommend suitable accounting firms for your needs.
Banking
Hong Kong, being one of the largest financial centers in the world also has no currency restrictions and the HK dollar is maintained at approximately US$1.00 = HK$7.80. Therefore, the Hong Kong currency which is freely tradable internationally is as stable as the US currency and will not suffer large fluctuations regardless of economic or any global event or market fluctuations.
Hong Kong is the financial center of East Asia and has one of the highest concentration of banking institutions in the world, approximately three quarters of the largest 100 banks in the world have an operation in Hong Kong. There are almost 200 licensed banks in Hong Kong.
Whether your needs are general retail banking or specialized private banking from European jurisdictions, you are sure to find a bank that will suit your needs in Hong Kong.
We have a close working relationship with a number of retail and private banks and are sure to be able to make recommendations and/or introductions to you that will most definitely suit your needs.
Taxation
Hong Kong has an extremely simple and straight forward taxation system for both individuals and corporations. Furthermore taxation in Hong Kong is territorially based, that is to say, tax is paid in respect of earnings and profits originating in Hong Kong alone.
Each individual in Hong Kong is entitled to an initial tax free allowance and subsequently Salaries Tax is paid at a tapered rate and where by the maximum tax payable by an individual is capped at 15% of earnings. Click here for the current Tax Rate Table issued by the Hong Kong Inland Revenue for individuals.
The tax rate for incorporation businesses is currently 8.25% for the first HK$2 million of business profits and thereafter at 16.5% for the remainder of the business profits.
There is no capital gains tax in Hong Kong, therefore interest income accrued in bank accounts, dividend payments or from investments are generally not taxable income.
Business entities in Hong Kong, whether incorporated or unincorporated, are required to maintain proper books of accounts and prepare audited accounts on an annual basis.
Whilst many jurisdictions use December 31 as the year-end for preparing their accounts, many companies in Hong Kong use March 31 as their year end, to coincide with the Government's fiscal year-end. However, you are free to set your own year-end for preparing your accounts.
If you should require assistance in preparing your accounts or seeking a suitable auditor for your needs we shall be pleased to recommend suitable accounting firms for your needs.
Banking
Hong Kong, being one of the largest financial centers in the world also has no currency restrictions and the HK dollar is maintained at approximately US$1.00 = HK$7.80. Therefore, the Hong Kong currency which is freely tradable internationally is as stable as the US currency and will not suffer large fluctuations regardless of economic or any global event or market fluctuations.
Hong Kong is the financial center of East Asia and has one of the highest concentration of banking institutions in the world, approximately three quarters of the largest 100 banks in the world have an operation in Hong Kong. There are almost 200 licensed banks in Hong Kong.
Whether your needs are general retail banking or specialized private banking from European jurisdictions, you are sure to find a bank that will suit your needs in Hong Kong.
We have a close working relationship with a number of retail and private banks and are sure to be able to make recommendations and/or introductions to you that will most definitely suit your needs.
Taxation
Hong Kong has an extremely simple and straight forward taxation system for both individuals and corporations. Furthermore taxation in Hong Kong is territorially based, that is to say, tax is paid in respect of earnings and profits originating in Hong Kong alone.
Each individual in Hong Kong is entitled to an initial tax free allowance and subsequently Salaries Tax is paid at a tapered rate and where by the maximum tax payable by an individual is capped at 15% of earnings. Click here for the current Tax Rate Table issued by the Hong Kong Inland Revenue for individuals.
The tax rate for incorporation businesses is currently 8.25% for the first HK$2 million of business profits and thereafter at 16.5% for the remainder of the business profits.
There is no capital gains tax in Hong Kong, therefore interest income accrued in bank accounts, dividend payments or from investments are generally not taxable income.
