The number of companies registered in Hong Kong is constantly growing due to a convenient tax system, which is based on the principle of territoriality – it means is that only income received directly in the area under the jurisdiction of Hong Kong is being the subject to taxation. The demand for tax law advice regarding Hong Kong companies is also increasing and is being used by a large number of foreign companies to successfully conduct business.
Guided by market trends and the needs of our clients, we provide advice on the specifics of taxation of companies registered in Hong Kong.
The main reason why many companies choose Hong Kong as a place of registration is the opportunity to use this city-state as a transit port, through which goods are delivered to anywhere in the world without paying VAT.
List of conditions under which no tax will be collected:
- The company has no employees in Hong Kong;
- The company does not rent an office in Hong Kong;
- Management and control of the company’s activities are carried out outside of Hong Kong;
- All major transactions are not made in Hong Kong;
- Partners and counterparties are not residents of Hong Kong;
- The place of origin and sale of the goods is not Hong Kong.
The presence of all the above factors indicates that the profit was not earned in Hong Kong.
A more complex case is the implementation of part of the operations on the territory of Hong Kong, part outside the territory of Hong Kong, in this case, you need to carefully weigh and analyze the risks, for such situations advice of taxes is the necessity.
The Hong Kong tax system provides for the following types of taxes:
- Personal income tax (from 2% to 17%). Applies to any person who receives income from employment in Hong Kong. Persons who provide services in this area, but are not residents, are taxed if their presence exceeds 60 days in the financial year.
- Property tax (15% of the value of real estate).Rental tax – 15% of the value of the income received from the rental of real estate. Applies to local residents and foreigners who own real estate in Hong Kong.
- Corporate income tax (16.5%). Aapplies if the company does not fall under the above-mentioned conditions in the article.
- Stamp duty. It is charged by the state for transactions with shares, real estate, etc.
Income, that is not taxable:
- Capital gains.
Missing types of taxes in Hong Kong:
- Sales tax
- Withholding tax on the payment of dividends
Our specialists are ready to provide legal advice on trademark registration in Hong Kong.
It is important to understand that the obtained trademark registration certificate is valid only in Hong Kong, not in mainland China. The registration procedure takes an average of 9 to 12 months. The registration certificate is issued for 10 years and can be extended.
List of documents required:
- A copy of the passport for individuals and a copy of the company registration certificate for legal entities.
- A detailed list of product classes.
- You must provide up to 15 copies of the stamp sketches.
- Samples of advertising products with the application of the trademark.
- Documents confirming the priority for trademark registration.
Stages of brand registration:
- A preliminary examination of the trademark is carried out in the Office for the Protection of Intellectual Property http://www.info.gov.hk/ipd (~3 weeks);
- In case of confirmation of uniqueness, an application for registration is submitted;
- The mark is checked for compliance with the requirements of the Hong Kong legislation;
- The data on the application is published in a special magazine;
- Within 3 months, third parties can submit a claim application;
- A certificate of trademark registration in Hong Kong is issued.