Hong Kong is an important international financial, trade and shipping center in the Asia-Pacific region. In the future, Hong Kong will be there The Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area will play a more important role in connectivity between China and the world. So many domestic personnel go to Hong Kong to set up companies to do business.

But many people go to Hong Kong to set up companies, but they ignore that Hong Kong is a special administrative region of China, and there are differences with the mainland. In Hong Kong, all companies are required to produce an audit report, which is used by the Inland Revenue Department to calculate profits tax for Hong Kong companies.

So this time we will look at Hong Kong corporate profits tax.

Profits tax in Hong Kong is a tax calculated on the basis of the profits of Hong Kong companies. Hong Kong's current tax preference, a two-tier tax rate, is available in200WHKDWithin, with8.25%Profits tax is levied at the preferential rate of200WHKDFuture profits are taxed at normal rates16.5%A profits tax is imposed. However, the difference between Hong Kong companies and China is the final settlement method. The domestic companies generally settle the annual corporate income tax by themselves, while the Hong Kong companies are calculated by the auditors who issue the audit report on the profits tax payable by the company this year.

At the same time, we should note that Hong Kong profits tax is different from domestic income tax. Domestic income tax is levied on all profits except tax-free income (regardless of domestic or overseas income, but if relevant taxes have been paid in other countries or regions, certain deductions can be made in China according to tax agreements). However, the profits tax in Hong Kong has regional limits. When the profits of Hong Kong companies come from Hong Kong, they need to calculate and pay the profits tax. If the profits of Hong Kong companies do not come from Hong Kong, they do not need to pay the profits tax in Hong Kong. In addition, capital gains in Hong Kong (i.e. general capital investment gains) are not subject to profit tax in Hong Kong.

In addition, we also need to know that the tax adjustment of domestic income tax is quite different from that of profits tax in Hong Kong. For example, the tax adjustment of most expenses is quite different.

The first is the business hospitality costs, the domestic need to carry out double standard cost adjustment, but Hong Kong in accordance with the actual amount, without tax adjustment, can be directly deducted before tax.

Advertising expenses and business publicity expenses, in China also have the corresponding deduction limit (the amount of income in the current year15%), the excess will be deducted for subsequent years; However, Hong Kong profits tax in this expense is based on the actual amount, there is no deduction limit.

Commission in the enterprise income tax, there is also a corresponding deduction limit (general enterprises according to the signing of service agreement or contract to confirm the amount of income5%To calculate the limit deduction, insurance enterprises occur in general accordance with18%But profits tax in accordance with the actual amount can be deducted before tax in full (need to meet industry standards).

From this, we can see that Hong Kong companies are different from mainland companies in many aspects. But the biggest difference is this2On the one hand, the tax system of the region where the company is located is very different from that of the mainland. On the other hand, the company needs to conduct an audit every year, and the auditor will calculate the profits tax.

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