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Low, Simple, Predictable Tax Regime
Our tax system is the most business-friendly in the world.
Firms pay only 16% profits tax
- unlimited carry-over of losses
Individuals pay no more than 15% in salaries tax
No value added or sales tax
No capital gains tax
No withholding tax on dividends and interest
Only income sourced in Hong Kong is taxable
No global taxation
The 1998-99 Budget has made it even more competitive -
Advance ruling service on source of profits
100% write off for expenditure on manufacturing plant and machinery owned by end users. Similar write off for computer hardware and software
Depreciation allowance for commercial buildings increased from 2% to 4%
Write off for refurbishment costs excluded from hotels to all other business sectors
Widening the scope for tax deduction for expenditure on research and development
Capital duty reduced from 0.3% to 0.1% and capped at HK$30,000 per case
Widening network of agreements to avoid double taxation
Concessionary tax rate of 50% of normal profits tax for offshore business of professional reinsurance companies
Improved arrangements for trading in regional derivatives
Stamp duty on stock transactions cut from 0.3% to 0.25%
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