04 January 2018

Hong Kong introduces two-tier profits tax rates regime

The Hong Kong Government published in the Official Gazette on December 29, 2017, the legislative bill (the Bill) to implement a two-tier profits tax rates regime announced by the Chief Executive in her 2017 Policy Address. The Bill will be presented to the Legislative Council for the first reading on January 10. Under the proposal, the tax rates for the first HK$2 million (US$256,000) of profits of corporations and unincorporated businesses (mainly sole proprietorships and partnerships) will be reduced by 50%.

A Global Tax Alert, attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2018-0019

Document ID: 2018-0019