Taxation

Taxation

 

Profit tax is one of the expenses concern to a company, while Hong Kong have its low tax rate and simple tax rules advantages to become an international business center. Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable here. Profits sourced elsewhere are not subject to Hong Kong Profits Tax.

But you have to know clearly how the principle operates. Some items are entitled for the exemption and reductions from profit tax. Moreover, it’s also allowed the tax return deadline extension under some special reason. An efficient tax planning helps to save cost and time, the more important is avoid from taxation law violation.

 

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