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──Aug 14 , 2021Shanghai Free Trade Zone Company and Hong Kong company comparison

I. Hong Kong Company

Hong Kong has a low corporate tax rate and a narrow tax base. Except for specific industries, Hong Kong companies are taxed only on profits. Hong Kong corporation profits tax rate is16.5%If the profit is less than200Hk $10,000 can also be taxed at half profit tax (i.e8.25%).

In addition, if the Hong Kong company's business is offshore and does not occupy any resources in Hong Kong, offshore income can also apply for exemption from profits tax.

2. Shanghai Free Trade Zone Company

Shanghai Free trade zone registered company tax and other mainland registered companies are the same company income tax25%. Only for international business companies in the free trade zone do not need to do the operator qualification record, and have the function of bond. Shanghai Free Trade Zone is currently divided into regions, Waigaoqiao tax zone is dedicated to do import and export business companies to do services.

Overall comparison shows that Hong Kong companies are more favorable to foreign trade industry than Shanghai Free Trade Zone companies, and Hong Kong companies can reduce tax costs more.

Shanghai Free Trade Zone Company and Hong Kong company comparison

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