- Tax reason – Hong Kong tax system is comparatively simple (including only Profits Tax, Salaries Tax, Property Tax and Stamp Duty). HK companies are taxed at 16.5% of their taxable profits. This low fixed rate and simple system has been in place for long. Some other countries may have high tax rates but offer preferential tax rates to some selected industries. Be careful when doing comparison as assumptions of fulfilling all conditions to enjoy preferential rates or perpetual existence of those government policies may not be valid.
There is no VAT, sales tax nor capital gain tax.
