The tax system in Hong Kong DONE BY : ABDRAKHMAN AIDA ACC-332
The tax system in Hong Kong is quite simple and is based on the territorial principle that is taxed only income earned in Hong Kong. There are 3 main tax property tax, payroll tax and income tax. Inland Revenue Department of Hong Kong is a government agency responsible for managing the collection of taxes, which are set Ordinance on taxes, the head 112.
At present, Hong Kong is working on accepted international accounting standards. Law on Internal Revenue (Inland Revenue Ordinance) - this is the main piece of legislation providing for the use of the basic 3 types of income tax: - Income tax; - taxes on salaries; - Property tax.
Not subject to tax in Hong Kong: 1) foreign cash commissions and fees received from licenses relating to music, movies; 2) revenues from consulting services; 3) income from patents, publication of materials, rights of mineral extraction; 4) rental income. As a rule, in order to avoid taxation, such items of income or placed in a deposit account in Hong Kong or elsewhere.
In Hong Kong, there is no following taxes and fees: * VAT; * tax on dividends, interest, royalties received from abroad or sent abroad, and capital gains; * fee charged at check-in cars; * airport taxes; * tax spectacle; * tax levied on hotel owners;
Corporate income tax For companies the size of profits tax is 16. 5%. It should be noted that the revenue derived outside Hong Kong, Hong Kong is not taxed. As an example: Scenario 1: The Hong Kong-based company bought ice cream in Russia and sold in Thailand. Contract to purchase ice cream in Russia signed a treaty on sale - in Thailand. The goods does not pass through Hong Kong. Taxation of 0%. Scenario 2: The Hong Kong-based company bought ice cream in Russia and sold in Hong Kong. Income tax is 16. 5%.
Property taxes in Hong Kong Property owners in Hong Kong are subject to the Government Headquarters which is 15% of the Net assessable value, the calculation is more complicated. If we translate it in simple terms - the tax rate is 15% of revenue, which the property owner could receive if he had rented the property. In practice, public presentation of the potential revenue for the property is usually underestimated.
tax Deductions State exercises a tax deduction for the following factors: married taxpayer The taxpayer has 1 or more children The taxpayer has a close relative The taxpayer has a disability The taxpayer is a single parent
Tax advantages of Hong Kong: • the territorial principle of taxation, ie no division on a resident and non-resident; • income tax for all companies - 16. 5% on the net profit obtained or derived from sources in Hong Kong; • absence of taxes on income from money capital, except for certain license fees; • No tax on interest income; • no exchange controls, exchange controls or restrictions on money transfers; • Providing pre-tax calculation schema Office Hong Kong Taxation. DISADVANTAGES • The absence of an agreement with the Republic of Kazakhstan for the avoidance of double taxation • Accounting, auditing, tax reporting
