As an American
citizen or say green card holder working in Hong Kong to lead a standard
lifestyle, taking care of your tax-paying responsibilities can be a complicated
task. However, countries like Hong Kong provide certain tax advantages to their
tax payers, including a tax regime, an opportunity to earn tax-free profits and
the best among all are- low taxation rates for specified companies engaging in
the business world. As an ideal
destination for businesses as well as potential entrepreneurs who are looking
for a tax-friendly country, US tax in Hong Kong is an exceptional choice. However,
in comparison to any other country, Hong Kong operates a simple taxation
system. There are no separate capital gains taxes, sales taxes, and withholding
taxes on dividends like in other countries. Noted that the taxation process in
Hong Kong doesn’t consider the taxpayer’s residency status, but based on the
territorial source principle.
Though knowing
which tax provisions may affect you and understanding your best options can be
a great help to stay on top of. With expert USA tax services Hong Kong, you can
stay easy knowing you have got the right expertise for US taxes in Hong Kong.
These tax pros make the tax filing process simple and easier. Their years of
experience in meeting the tax guidelines can help you aware of the Hong Kong
tax system and prevent you from tax failure.
Features of Hong Kong Taxation System
Low taxation rate- In the world, Hong
Kong is the only country which charge approx 16.5% profit tax rate which is
till date one f the lowest tax charging rate in the world.
Easier tax administration-There is no
denying in saying that the tax administration of Hong Kong is simple. There are
mainly three types of direct taxes imposed in Hong Kong- Property tax, profit
tax, and salary tax. Moreover, Hong Kong doesn’t charge for turnover tax, i.e.
VAT or goods and service tax, which is mostly charged in many other developed
countries.
Territorial source concept- Hong Kong
taxation system is based on territorial sources instead of the residency
concept. Unlike other countries like United States, China, and Canada, which
impose a tax on their tax residents on worldwide income, Hong Kong has a simple
taxation system in which only those income are taxable which arise or generate
in ‘Hong Kong’ itself.
If you still
find the Hong Kong taxation system beyond your capability, there is nothing you
should worry about because you can have the reliable guidance of US tax professionals
in Hong Kong anytime.
