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Hong Kong

Taxes

A trust established in Hong Kong may not be subject to local taxes applicable to the assets and income of the trust, provided that no residents of Hong Kong benefit from the trust and no physical assets are located there.

It must be noted that the choice of law of the trust would not be applicable to tax matters, which would be governed by the respective jurisdiction where the settlor, beneficiaries, assets or trustee are located, as applicable.

You should consult with your tax advisor or accountant to know the tax implications in your jurisdiction of residence when establishing a trust in Hong Kong, transfer assets to it and receive profits from said assets.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 16.5% Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 4.95% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • Indefinitely Losses carryforward (years)
  • FIFO Inventory methods permitted
  • 72 Tax time (hours)
  • 3 Tax payments per year
  • 5.00% Social Security Employee
  • 5.00% Social Security Employer
  • 17% Personal Income Tax Rate
  • 0% VAT Rate
  • 35 Tax Treaties

Country details

Hong Kong
HKD
Hong Kong
Asia
Chinese (Hong Kong), yue, zh, English
6,898,686

Hong Kong is a Special Administrative Region of the People’s Republic of China (Hong Kong SAR). Its official languages are English and Cantonese.

Although it is part of the People’s Republic of China, the region maintains an independent economic, administrative and judicial system, and even its own currency, the system of customs and external borders.  Its official legal tender currency is the Hong Kong Dollar (HKD), pegged to the USD, which is the ninth most traded currency worldwide.

The legislative council is the Hong Kong Parliament, which is formed by 60-members, half elected by universal suffrage in geographical circumscriptions, while the other 30 are elected by groups of representatives from different economic and social sectors.

Its public finances are characterized by its sustainability, with no public net debt, continuous government surplus and ample foreign exchange reserves, all supported by rigorous anti-corruption measures.

Hong Kong’s economy is mainly based on financial services, tourism, wholesale and retail trade, and international trade, especially trade between China and the rest of the world. Hong Kong is one of the world’s major financial hub, ranking eleventh worldwide in the volume of banking operations and the Hong Kong Stock Exchange being the second largest capital market in Asia, after the Tokyo Stock Exchange.

Tax treaties

Country Type Date Signed
Ireland DTC  2010-06-22
Belgium DTC  2003-12-10
Austria DTC  2010-05-25
Malta DTC  2011-11-08
Luxembourg DTC  2007-11-02
Malaysia DTC  2012-04-25
Switzerland DTC  2010-10-04
Denmark TIEA 2014-08-22
Greenland TIEA 2014-08-22
France DTC  2010-10-21
Portugal DTC  2011-03-22
Guernsey DTC  2013-03-28
Netherlands DTC  2010-03-22
Norway TIEA 2014-08-22
United Kingdom DTC  2010-06-21
Italy DTC  2013-01-14
China DTC  2003-12-10
Viet nam DTC  2008-12-16
Iceland TIEA 2014-08-22
Jersey DTC  2012-02-15
Brunei Darussalam DTC  2010-07-19
New Zealand DTC  2010-12-01
Indonesia DTC  2010-03-23
Mexico DTC  2012-06-18
Faroe Islands TIEA 2014-08-22
Hungary DTC  2010-05-12
Sweden TIEA 2014-08-22
Qatar DTC  2013-05-13
Liechtenstein DTC  2010-08-12
Kuwait DTC  2010-05-13
Thailand DTC  2005-09-07
Spain DTC  2011-04-01
Japan DTC  2010-11-09
Czech Republic DTC  2011-06-06
Canada DTC  2012-11-11

Tax treaties Map

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Services

We can help you incorporate a Trust in Hong Kong.
Please, contact us to request a free, no obligation consultation.

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