For clientsHong Kong companyDo you have to pay profits tax in Hong Kong to invest in digital currencies such as bitcoin?

Hong Kong companies that make long-term investments, such as equity investments, do not need to pay profits tax in Hong Kong. However, if it is a Hong Kong company that makes speculative profits rather than long-term investments, it is subject to Hong Kong profits tax. If a Hong Kong company invests in a digital currency, it is generally regarded as a kind of speculation. If the trading platform of the digital currency is located in Hong Kong, the Hong Kong company will be subject to the profits tax of Hong Kong if it gains value from the investment. But be aware that the tax is paid only if the investment has been sold and the appreciation has been realized. If the company in Hong Kong has floating profits on its books only because of changes in fair value, it does not need to pay profits tax in Hong Kong when the company has not sold the digital currency, that is to say, its speculative profits have not been realized. Only when the investment is sold and the Hong Kong company makes a real profit will the Hong Kong profits tax be calculated.

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