It's low. Purposely so. And very simple, especially when compared with the complexity of American tax law.

All companies registered in Hong Kong are required to file annual returns providing details of revenue and profits, names of company officers, allotment of shares, mortgages, etc.

There are numerous accounting firms and law offices which will handle this paperwork on an annual basis for a small fee.

There is no total income concept in Hong Kong.

Tax is computed on income arising in, or derived from, Hong Kong under the following headings:

Profits tax - 16% in respect of income sourced in Hong Kong through trade, profession or business. Unincorporated businesses are taxed at a rate of 15%, whether wholly or foreign-owned or controlled.

Salaries tax - Maximum rate of 15% on income earned in Hong Kong from employment.

Property tax - standard rate of 15% on rental income from land and buildings in Hong Kong.

An individual whose visits in Hong Kong total no more than 60 days in any year of assessment is not subject to tax.

Corporations carrying out business in Hong Kong do not have to pay profits tax on income that has a non-Hong Kong source.

Duties: Hong Kong is renowned as a free port, although customs duties are imposed on a few items, notably liquor, cosmetics, tobacco, petroleum fuels, and automobiles.

Further information is available from:

The Inland Revenue Department
Revenue Tower
5 Gloucester Road
Wanchai, Hong Kong
Tel: 2187-8088
Fax: 2519-6714