HUANZE

Overseas company knowledge base

──May 19 , 2021Is the investment income subject to profits tax after registration in Hong Kong?

Since last year, the whole world has been fighting the epidemic together. So far, the international epidemic has entered a relatively stable stage, and people have begun to pay attention to the economic recovery. With the recovery of the international economy, many Chinese people have begun their own journey of international trade. So many people in order to facilitate international trade, in Hong Kong registered Hong Kong companies. Some people register Hong Kong companies for international trade, and some people register Hong Kong companies for investment.

Hong Kong taxes corporate profits in the form of profits tax, which is levied only on profits generated by a company's normal operations. If a Hong Kong company makes capital investment, it does not need to calculate and pay profits tax. Therefore, if a Hong Kong company makes long-term equity investment, long-term stock holding and other capital investment, the profits generated by this part will not be subject to profits tax.

It should be noted that capital gains are not subject to profit tax. Accordingly, if capital investment loses money, the loss can not be offset against profit tax.

Are Hong Kong companies subject to profits tax on investment income?

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.

BACK
PREV

Do I have to pay personal income tax to work in a Singapore company?

NEXT

How can the profit of Hong Kong company be transferred back to China after receiving the labor fee from Singapore shipping company?