On 29 Dec 2017, the Inland Revenue (Amendment) (No.7) Bill 2017 was gazette. The bill seek to implement a two-tiered profits tax rate regime and will apply starting the year of assessment 2018/2019.
For Limited company
For Unlimited company/ Partnership
Objectives
- To attract more foreign businesses
- To keep a competitive taxation system, i.e. maintaining a simple tax regime and low tax rates
- Reduce tax burden on enterprises (especially small and medium sized company)
Tax Implication
A qualified tax paying company may save up to HKD165,000 (HKD150,000 for unincorporated company) each year.
