Hong Kong companies to pay only 17.5% of the profits tax, without having to pay sales tax, VAT. About Hong Kong imposed a range of corporate profits tax, profits tax collection methods and policies are described below.

Hong Kong companies to pay only 17.5% of the profits tax, without having to pay sales tax, VAT. About Hong Kong imposed a range of corporate profits tax, profits tax collection methods and policies are described below.
First, the concept of profits tax
Profits Tax refers to the Hong Kong government to engage in trade, profession or business in Hong Kong to obtain or who earn net profit levied taxes. Here the meaning of "acquired or earned net profit" includes all economic sources of Hong Kong companies, partnership, organizations and groups have made in Hong Kong.
Second, the profits tax payers
Hong Kong, "the Inland Revenue Ordinance" provides that profits tax taxpayers refers to all companies engaged in any trade, profession or business in Hong Kong to obtain benefits, partnership, firm, groups and individuals.
Third, the tax base of profits tax

Any person, including a corporation, partnership business, the trustee or groups operating in Hong Kong trade, profession or business is obtained from the trade, profession or business arising in or derived from Hong Kong assessable profits (the sale of capital assets, income excluding profit), should pay taxes. The object of taxation is not resident or non-resident persons, respectively.

Therefore, resident person can profit from overseas without tax in Hong Kong; conversely, a non-resident person who earns in profits generated in Hong Kong shall be taxable. As to whether the business operations in Hong Kong and whether profits are derived from Hong Kong in, mainly based on the fact may be, but the principles used in the tax case can be referred to the Hong Kong courts and the Privy Council judgment. Profits generated overseas, even if the money remitted back to Hong Kong, nor any obligation to pay taxes.

If any person to sell the building or the property is part of belonging to for-profit plan, then the person will be treated as operating a "business", and shall be subject to profits tax on any profits.

Fourth, to determine the taxable profits tax special provisions

According to the Inland Revenue Ordinance, the following amounts shall be deemed to have resulted in the Hong Kong trade, profession or business in Hong Kong or Hong Kong revenues generated from:

(1) The amounts due to be released or used in Hong Kong film movies or television, tape or record, or any of the film, tape or record relating to promotional materials obtained.

(2) the permit or authorize the use of property, patents, designs, trademarks, copyrighted materials, secret process or formula or other similar nature in Hong Kong to receive payments.

(3) The business in Hong Kong and to receive such grants, allowances or similar form of subsidy payments. But any money and capital expenditures related to the excluded.

(4) because chattel permit or authorize use in Hong Kong, while in the rental fee, rent or other similar forms of collected payments.on-resident and non-resident service agents
(1) Non-resident person carrying on a trade, profession or business in Hong Kong to obtain profits arising in or derived from Hong Kong shall be taxable in Hong Kong. This tax directly to the non-resident person or his agent impose, regardless whether the agent has received profits. IRD may recover this tax from the assets of the non-resident person, but also be able to recover the agent. The agent must retain sufficient funds from the assets of non-residents in order to prepare tax.
Item (2) non-residents obtained from the Inland Revenue Ordinance contained in section 15 (1) (a) or (b), and a non-resident entertainer or athlete in Hong Kong entertainer or athlete performances identity and amounts receivable are taxable. This tax can be levied on behalf of the person payments. The person or by transfer payment to pay these amounts shall at the time of payment or transfer payment, deducted from these payments from sufficient to cover the amount of tax payable.
(3) The resident consignment shall declare a quarterly basis to the Commissioner of its total sales on behalf of non-resident person shall be consigned and shall simultaneously pay to the Commissioner a sum equal to 1% of the total sales or tax payments The Secretary

(4) If the non-resident and resident business people, and management methods so that the resident person is not eligible for any profit, or that it profits from less than ordinary independent business operators can get profits, this business can be The non-resident person is deemed to operate a business in Hong Kong, and to the resident person as its agent.
(5) If the non-resident person can not easily determine in Hong Kong trade, profession or business actually gets the profits, according to their calculation of the IRD their profits in a fair percentage of the turnover of Hong Kong.
(6) If the non-resident parent company is located in a place outside Hong Kong, but failed to show its accounts in Hong Kong permanent institution actually gets the profits, during the assessable profits of the Hong Kong branch will The method of calculation of the ratio, for example, according to the Hong Kong branch of the turnover in the proportion of total turnover to calculate the profits, Hong Kong Branch.
Assessable profits (or adjusted loss) refers to any person in the basis period in accordance with the provisions of Part IV of the Inland Revenue Ordinance calculated or net profit generated in Hong Kong Hong Kong (or loss incurred) [obtained from sale of capital assets acquired profits (or losses suffered) excluded. ﹞