… the profits tax rate for the first $2 million of profits of enterprises will be lowered to 8.25%, or half of the standard profits tax rate, instead of 10% as proposed in my Election Manifesto.1
Now this is how you encourage small to medium size companies to do business in your country. Also interesting that, contrary to what is usually happening in some other countries, this government does not only do as promised (lower the tax to 10%), they even overdeliver by cutting the rate down to 8.25%.
The new tax scheme is supposed to be implemented by April 2018. From then on, even if your company for whatever reason fails to secure the 0% tax rate for offshore businesses, it will enjoy one of the lowest corporate tax rates of the world2 for the first HKD 2 million (USD 250,000 at the time of this writing).
If you think now’s a good time to start up your own Hong Kong Company, check out Bridges. I have written about my experience setting up a Hong Kong Limited with them back then, and after working with Bridges for 2 years I can still really recommend them. Having a competent partner at your side makes the whole process a breeze. Mention I3 sent you and we’ll both get a nice discount.
Photo Credit: View of Hong Kong from Victoria Peak by Dennis Tang