Hong Kong is a key management center for international investment, trade and shipping in Asia. In the future, Hong Kong will be there The Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area will play a more critical role in data sharing between China and the international community. So many domestic people go to Hong Kong to set up companies to explore the market.

However, many people go to Hong Kong to set up companies, but they ignore that Hong Kong is a special administrative region in our country, and there are differences with the domestic. In Hong Kong, all enterprises are required to make financial audit reports, which are used by the Hong Kong Tax Bureau to calculate the profits tax of Hong Kong enterprises.

Therefore This time we will understand, Hong Kong enterprise profit tax.

Profits tax in Hong Kong is a tax calculated and levied on the profits of Hong Kong enterprises. The preferential tax policy implemented in Hong Kong at the present stage - secondary levy rate, in200WHKDWithin, with8.25%Profits tax on the ex-gratia rate,200WHKDFuture profits are based on the normal levy rate16.5%Collect profits tax. However, there is a difference between Hong Kong enterprises and China in the final settlement method. Chinese enterprises generally settle the annual income tax independently, while Hong Kong enterprises carry forward the profits tax payable in the current year by certified public accountants who produce financial audit reports.

In addition, it must be noted that profits tax in Hong Kong is different from corporate income tax in China, which is levied on all the profits of individuals except for the tax exemption policy (it does not distinguish between domestic and overseas. If relevant taxes and fees have been paid in other countries or regions, certain tax deductions can be made in China according to the tax agreement). However, the profits tax in Hong Kong is geographically limited. When the profits of a Hong Kong enterprise come from Hong Kong, it must be calculated and paid. If the profits of a Hong Kong enterprise do not come from Hong Kong, it does not need to pay profits tax in Hong Kong. In addition, capital gains in Hong Kong (i.e., profits made on capital projects in general) are not subject to profit tax in Hong Kong.

In addition, we must also understand that the adjustment of corporate income tax in China is very different from the adjustment of profits tax in Hong Kong. For example, the adjustment of the tax of the vast majority of expenses will be very different.

The first is the hospitality expenses, which need to be adjusted for double standard expenses in China. However, in Hong Kong, based on the specific profits of this year, tax adjustment is not required, and tax can be directly offset before tax.

Advertising and business publicity costs, in the domestic is also a relative deduction of the amount of income15%), annual tax credits after the excess; However, Hong Kong profits tax in this expense is also based on the specific profit of the current year as the standard, there is no deduction limit.

Commission in the income tax, there is a relative deduction limit (general company according to the service contract or contract to determine the income limit5%Calculate the amount of deduction, commercial insurance companies generally in accordance with the18%However, the profits tax is based on the specific profit of the current year as the standard to be able to deduct the full amount of pre-tax (must meet industry standards).

Thus we can see that Hong Kong enterprises and mainland enterprises are different in many aspects. However, there are two major differences. On the one hand, the tax system of the region where the enterprise is located is very different from that of the mainland. On the other hand, the enterprise must carry out financial audit every year, and the auditor shall carry out the remittance of profits tax.

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