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What are the differences between Hong Kong tax and Mainland tax?

Released Date: Aug 02,2022 Article Source: HUANZE

With the development of the global economy, many mainland enterprises will choose to set up companies in Hong Kong. One of the biggest reasons to set up a company in Hong Kong is its favorable tax policy.

With the development of global economy, many enterprises in mainland China will choose to work inIncorporation in Hong Kong. inIncorporation in Hong KongThe biggest reason is that Hong Kong has favorable tax policies.

Many enterprises that set up companies in mainland China know that enterprises in mainland China not only need to make monthly or quarterly tax returns, but also need to make annual final settlement of corporate income tax.In the face of enterprise income tax settlement, a lot of expenses need to be tax reduction, such as business entertainment expenses, welfare expenses, business publicity expenses, trade union funds and so on;But in Hong Kong, as long as the expenses actually incurred can be deducted from the profit, there will be no tax adjustment.

More importantly, the tax system in the mainland is a global tax. Residents and enterprises in the mainland need to pay taxes on their income from overseas or domestic sources, and the types of taxes are relatively complicated.Hong Kong's main taxes on business operations are profits tax and salaries tax, which are relatively simple. And only for the tax from Hong Kong, relative to the tax to a lot of preferential.

What are the differences between Hong Kong tax and Mainland tax?

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.

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