Are there any taxes in HK?

#1

Hey guys, I’m Mike and I’m in the process of moving to Thailand right now, I plan to register my company in Hong Kong and I heard there’s 16.5% taxes from some people and some people told me they pay 0% taxes…

What’s true here?

How much taxes do you actually pay in HK?

Thanks! :smile:

#2

I’ve been told its 0% as long as you don’t have any activity there, but I cannot say it for sure!

#3

@mikedolev The corporate tax rate is 16.5%. Income from activities arising outside of HK can potentially be tax-free. I say potentially as you still have to apply to Inland Revenue to get this status - it’s not as clear cut as a lot of people make it out to be. You’ll also have to file audited financials every year, which is a major headache.

There are far better options out there. I honestly don’t know why the Digital Nomad community has such a hard-on for Hong Kong companies, IMHO.

#4

@international_man
Could you tell us about these better options out there?
thanks

#5

Just mentioned this in another thread, but might be useful here too:

This podcast from Tropical MBA is an interesting listen on taxes for location independent businesses. Whilst not directly related to HK companies, it’s still worth a listen.

http://www.tropicalmba.com/tax/

j

#6

@Oskar Sure - BVI and Marshall Islands with Banking in Singapore are what I prefer. Much better if you’re not an American. Both these structures have no audit or reporting requirements. Merchant accounts are a bit trickier, but doable. I know this is brief, but hope that helps. If you have any other questions, just ask!

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#7

As other people have said, Hong Kong has a territorial tax system.

This article that I wrote a few years ago gives a good overview of incorporating in HK and the positives and negatives of doing so.

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