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What is the difference between profits tax and domestic income tax in Hong Kong?

Released Date: Feb 21,2022 Article Source: HUANZE

The main reason why many international trade enterprises choose to set up companies in Hong Kong is the preferential tax policies of Hong Kong companies.

What are the main reasons why many international trade enterprises choose to set up in Hong KongHong Kong companyTax incentives.

If you set up a company in Hong Kong, you will enjoy the Hong Kong tax free policy for offshore trade. At the same time ifHong Kong companyThere are field operations in Hong Kong and annual losses, which can be made up indefinitely, without time limit requirements.

The annual loss in the mainland region is5If the company generates profits after this period, it cannot make up for the losses generated in previous years. Thus, many enterprises will choose to set up in Hong Kong, a big reason is becauseHong Kong companyThe tax policy will reduce the tax cost of enterprises greatly.

The establishment of a company in Hong Kong every year is the need to do audit, so choose a professional secretary company is a must, otherwise not enjoy the tax benefits, but to increase the tax risk to the enterprise, increase the tax cost, but more than worth the loss.

What is the difference between profits tax and domestic income tax in Hong Kong?

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.

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