Hong Kong adopts a territorial source principle of taxation and has a simple and lower tax rate systems. Only profits which have a source in Hong Kong are taxable here. Profits sourced elsewhere are not subject to Hong Kong Profits Tax

If you carry on a trade, profession or business in the form of a corporation, partnership business or if a non-resident person is chargeable to profits tax in your name, you must complete all items in the following profits tax returns (if applicable) to report the profits tax liability, and the tax within one month after the return issued.

The Inland Revenue (Amendment) (No. 3) Ordinance 2018 was enacted on 29 March 2018. The amendment ordinance has introduced two-tiered profits tax rates for corporations(limited) and unincorporated (unlimited) businesses by lowering the tax rate for the first $2 million of assessable profits with effect from the year of assessment 2018/19. However, for two or more connected entities, only one of them may elect the two-tiered profits tax rates.

Tax rate

Assessable profits

Corporations (limited liability)

Unlimited Company

First HKD 2 million



Over HKD 2 million





Our experienced team can act as your tax representative to provide value-added advice on your tax positions. We provide a full range of tax services, including but not limited to:

  • Statutory tax compliance services, including acting as the profit tax representative and assisting in fulfilling statutory compliance requirements under the Inland Revenue Ordinance (“IRO”),
  • Advising on Hong Kong Taxation
  • Objection/ extension on the tax assessment
  • Apply offshore exemptions
  • Handling field audits and investigations from HKIRD
  • Advance ruling application