Profit Tax Guides to SME Owners | 中小企業業主利得稅案

Hong Kong is providing an attractive business environment with a welcoming taxation system and free trade policies. In the past 180 years, Victoria City became one of the largest trading ports in the world. Profit tax is one of the major income of in this city. As an SME owner, what do I need to pay attention to the profit tax system? We will explain the guides of profit taxes for private limited companies in Hong Kong in the following article.

How does profit tax work in HK?

Profit tax means a percentage of profit from your business that you have to pay to the government. Especially, Hong Kong is adopting a territorial basis for profit tax. No matter local or foreign companies, carried on your business and sourced income in Hong Kong is subjected to the profit tax. Branches are treated in the same way.

What is The Territorial Source Principle of Taxation

You need to pay the tax where your company profits made. You could refer to 2 examples below.

Case 1. Mr. CHAN is a Hong Kong citizen, and he has a Hong Kong registered company and his office is located in Netherland. Also, his products and market are only in Netherland. Then he only needs to pay Netherland taxes.

Case 2. Tommy is a Dutch and he owned a Hong Kong registered trading company and office in HK. However, his clients are majorly coming from European. He also needs to pay the taxes in HK cause his operation teams are working in HK.

Reviewing these 2 examples, both owners are benefited from Comprehensive Double Taxation Agreements. According to this agreement, it prevented double taxation and fiscal evasion between HK and other international tax administrations. That is the reason why you need to pay profit tax to the HK government if your company has profits in the financial year.

 

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香港的低稅收制度和自由貿易政策提供誘人的商業環境。在過去的180年中，維多利亞城成為世界上其中一個最大的貿易港口。利得稅是香港的主要稅收來源之一。作為中小型企業的擁有者，在利潤稅制度上有什麼需要注意？我們將在本週文章中解一下釋香港私人有限公司的利得稅指南。

香港的利得稅如何運作？

利得稅是您必須向政府支付的業務利潤的百分比。特別是，香港採用地域來源徵收利得稅。無論本地公司或外國公司，在香港從事的業務和所得收入均應繳納利得稅。在香港的公司分部處理方式相同。

什麼是稅收的地域來源原則

您需要在公司獲利的國家或地區繳納稅款。您可以參考以下2個案例。

案例1.陳先生是香港永久居民，他在香港擁有一間註冊公司，但其辦公室位於荷蘭。同樣，他的產品和市場僅在荷蘭。因此，他只需要支付荷蘭的稅。

案例2. Tommy是荷蘭公民，他在香港擁有一家香港註冊的貿易公司和辦公室。他的客戶主要來自歐洲。但是他還需要繳交香港的利得稅，因為他的運營團隊是正在香港工作。

回顧這兩個例子，2人都可以從《全面性避免雙重課稅協定》中受益。根據該協議，它防止了香港與其他國際稅務機關之間的雙重徵稅和逃稅行為。因此，如果您的公司在香港設有辦公室和該財政年度內的運營獲利，則需要向香港政府繳納利得稅。

尖沙咀商務中心擁有12年的經驗提供專業的會計和審計服務。 尋找專業的會計顧問？ 請隨時通過[email protected] / Whatsapp給我們+852 9168 9205。