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──Mar 07 , 2022Analysis on Profits tax of Hong Kong Company two-stage System

All at presentHong Kong companyCan be taxed at the two-tiered profits tax rate unless the Hong Kong company has other related entities nominated for the two-tiered profits tax rate.

Hong Kong companyThe standard rate of profits tax is16.5%and15%But in order to lower the tax burden for taxpayers, from2018years4The profits tax rate for the first $2 million of assessable profits of corporations and illegal corporate businesses (mainly partnership and sole proprietorship) will be reduced to8.25%(Schedule to Inland Revenue Ordinance8Half of the rate specified) and7.5%(Half the standard rate), and the subsequent assessable profits in excess of $2 million of corporate and unincorporated business will continue respectively16.5%And standard rate15%Tax.

If an entity has one or more related entities at the end of the basis period in the relevant year of assessment, the two-tier system of profits tax will apply to only one of the nominated related entities and the remaining related entities will not be subject to the two-tier system利Tax rate. There is no deadline for the implementation of this two-tier tax rate, so you can continue to enjoy the two-tier tax rate. If it is a group affiliated entity, be sure to note that only one entity can enjoy.

Analysis on Profits tax of Hong Kong Company two-stage System

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