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Hong Kong Company Zero Tax Declaration

Updated:2018-12-5 11:37:17    Source:www.tannet-group.comViews:291

Hong Kong company zero tax declaration refers to make zero profits tax return for your HK company. In Hong Kong, profits tax is an income tax chargeable to business carried on in Hong Kong. Applying the territorial taxation concept, only profits sourced in Hong Kong are taxable in general. Hong Kong company pays zero tax on income or profits earned outside of Hong Kong. This allows for an internationally respected trading vehicle with good tax effective removal of profits.

Hong Kong has one of the most tax-friendly economies in the world. The ease of submitting tax returns is another attractive part of Hong Kong's business environment. One can complete its tax returns by itself, or rely on a accountancy firms for cost-effective tax services and advice.

Can your HK Company make zero profits tax return?
Without operation, Hong Kong companies can legally make zero tax return. Companies that involved in operations must make profits tax return according to the business. In some regards, as along as you conduct a business transaction or activity under the name of the company, the company has already engaged in operations. These activities include:

1. There are business transaction records on HK bank account;
2. There are import and export records on the customs;
3. Having made an order with Hong Kong merchants;
4. Having hired an employee in Hong Kong;
5. Allowing or authorizing the use of patents, trademark designs and other information in Hong Kong;
6. Allowing or authorizing the use of immovable property in Hong Kong to collect rent, rental fees, etc;
7. Entrusting to sell in Hong Kong;
8. Other profits derived from Hong Kong.

How to file zero tax return?
If the company don’t carry out business in the financial year, this company can directly carry out zero tax return. The new established company will received the profit tax return from the HK Inland Revenue Department after 18th months. And zero tax return must carry out in the following one month after receiving the profit tax return. The standard fee is HKD800.

The filing procedures are as follows:
Receive the profit tax return→shareholders to confirm & sign→pay the money→apply for tax return from Inland Revenue Department (IRD)→finish the filing process

Hong Kong taxes are among the lowest in the world, and our tax regime is simple and predictable. Hong Kong is a well-respected location for business and trade and has first class banking facilities. It is an excellent jurisdiction for introducing into the China mainland market. Tannet provides a full range of services for you to run a business in Hong Kong, including company formation, accounting and bookkeeping, tax filing, trademark/patent/copyright registration, barcodes registration, etc.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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