All corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Hong Kong are chargeable to tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Hong Kong from such trade, profession or business.
Hong Kong Stamp Duty
In accordance with the Stamp Duty Ordinance (Cap. 117), the following transactions and documents are subject to stamp duty:
Conveyance on sale (i.e. assignment);
Agreement for sale of immovable property;
Lease of immovable property; and
Transfer of Hong Kong stock.
Hong Kong Property Tax
Property tax is charged on the Hong Kong owners who have derived rental income from letting properties situated in Hong Kong and is computed at the standard rate on the net assessable value of the property.
If the income from property chargeable to Property Tax is included in the taxpayer’s profits for Profits Tax purposes, or if the property owned by the taxpayer is occupied by him/her for business purposes, the amount of Property Tax paid may be deducted from the amount of Profits Tax assessed. Corporations carrying on a trade, profession or business in Hong Kong, on application made in writing to the Commissioner, may be exempt from paying the Property Tax which would otherwise be set off against their Profits Tax.
Hong Kong Salaries Tax
Salaries Tax is imposed on all income arising in or derived from Hong Kong from an office or employment or any pension. “Income arising in or derived from Hong Kong”, without in any way limiting the meaning of the term, includes all income derived from services rendered in Hong Kong including leave pay attributable to such services.
Hong Kong Estate Duty
Estate Duty is charged according to a sliding scale of rates which vary with the date of the deceased’s death on the total value of the property situated in Hong Kong which “passes” or deemed to pass in connection with a person’s death.
Effective from 11 February 2006, the Revenue Ordinance 2005 was passed to abolish the Estate Duty. No estate duty affidavits and accounts need to be filed and no estate duty clearance papers are needed for the application for a grant of representation in respect of deaths occurring on or after that date.
Source：Hong Kong Inland Revenue Department’s website
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Hong Kong Taxation System. Property tax is charged on the Hong Kong owners who have derived rental income from letting properties situated in Hong Kong and is computed at the standard rate on the net assessable value of the property.Salaries Tax is imposed on all income arising in or derived from Hong Kong from an office or employment or any pension. “Income arising in or derived from Hong Kong”
Advance Ruling under section 88A of the Hong Kong Inland Revenue Ordinance (“IRO”) is for those who wish to ascertain the tax position of a contemplated transaction or arrangement. A person may apply to the Commissioner of the Hong Kong Inland Revenue Department (“IRD”), subject to the payment of a fee and certain regulations, for a ruling on how any provision of the IRO applies to the arrangement specified in the application.
The Field Audit and Investigation Unit of the Hong Kong Inland Revenue Department (“IRD”) is responsible for conducting tax field audits and investigations on businesses and individuals with a view to fight against possible tax evasion and avoidance.In field audit, IRD officers visit taxpayer’s business premises and examine the accounting records kept by the taxpayer in order to see if the reported profits are correct.
