1. Related taxes in Hong Kong, China:
1. Profits tax:
Equivalent to domestic corporate income tax, with a tax rate of 16.5%. When a company operates for a year, the income minus costs and the tax that needs to be paid on the profit are called profits taxes.
2. Property tax:
Equivalent to domestic property tax, with a tax rate of 16%-17%. In Hong Kong, if there is real estate and other properties for rent, the tax that needs to be paid to the government on the rental income is called property tax.
3. Personal salary tax:
It is equivalent to domestic personal income tax, with a tax rate of about 16%. Salaries tax is calculated at progressive rates based on salary income.
2. Hong Kong taxes can be simply divided into direct taxes and indirect taxes. Hong Kong has always implemented a simple tax system with fewer types of taxes and mainly direct taxes. Direct taxes mainly include salaries tax, profits tax, property tax and personal assessment tax.
Indirect taxes mainly include rates, land rent and land tax, stamp duty, gaming and lottery tax, commodity tax, hotel rent tax, business registration fee, passenger departure tax, vehicle registration tax, and patents. taxes and privilege taxes, etc.
Personal salaries tax is a salary tax that must be paid by anyone whose income in Hong Kong comes from employment, employment or retirement. The salary tax rate is calculated on a progressive basis after deductions and exemptions, but the total tax paid will not exceed 17% of the assessable income.
Extended information:
Introduction of additional taxes
Land departure tax
In 1999, a certain political party in Hong Kong proposed that because There are many Hong Kong people going north for consumption, so the proposal to add a land departure tax was a strategy to raise money for Hong Kong's coffers, but in the end nothing was done.
Goods and Services Tax
Main article: Goods and Services Tax
In 2006, the Hong Kong government launched a tax reform document, one of the important changes was the introduction of a tax on goods and service tax. According to the consultation document, the tax rate will be 5%, thus increasing treasury revenue by HK$30 billion, but the government will also introduce various tax reduction measures. The Hong Kong government claims that this tax can broaden the tax base and prevent a small number of people from paying most of the tax;
However, the public is generally opposed to the introduction of this tax, saying that this tax robs the poor and helps the rich, aggravating the economic crisis. The burden on the public is even more detrimental to low-income people who have never had to pay salaries tax (because their income is completely offset by the tax exemption). Due to strong public opposition, the government has shelved consideration of this tax.
In early December 2006, due to overwhelming opposition from all walks of life and political parties, the government officially shelved the consideration of this tax. Ratings agencies said they were "disappointed" but took no concrete action.
Baidu Encyclopedia-Hong Kong Taxation