Hong Kong’s Tax Compliance for E-Commerce Businesses Selling into Mainland China
📋 Key Facts at a Glance Hong Kong Profits Tax: 8.25% on first HK$2M, 16.5% on remainder for corporations (2024-25) Mainland China VAT Threshold: RMB 500,000
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📋 Key Facts at a Glance Hong Kong Profits Tax: 8.25% on first HK$2M, 16.5% on remainder for corporations (2024-25) Mainland China VAT Threshold: RMB 500,000
📋 Key Facts at a Glance Tax Rate Gap: Hong Kong’s corporate tax is 8.25%/16.5% vs Mainland China’s 25% (with incentives) Capital Gains: Hong Kong generally
📋 Key Facts at a Glance Tax System Difference: Hong Kong uses territorial taxation (only HK-sourced profits taxed), while Mainland China taxes worldwide income Corporate Tax
📋 Key Facts at a Glance Territorial System: Hong Kong only taxes profits sourced in or derived from Hong Kong, not worldwide income FSIE Regime: Foreign-sourced
📋 Key Facts at a Glance Tax System Difference: Hong Kong uses territorial taxation (only HK-sourced profits taxed), while Mainland China taxes residents on worldwide income
📋 Key Facts at a Glance Territorial Taxation: Hong Kong only taxes profits sourced within its borders, not worldwide income Profits Tax Advantage: Two-tiered rates: 8.25%
📋 Key Facts at a Glance Hong Kong Profits Tax: Two-tiered system: 8.25% on first HK$2 million, 16.5% on remainder (corporations) China-HK DTA Benefits: Reduced 5%
📋 Key Facts at a Glance Tax Savings: First HK$2 million taxed at 8.25% vs 16.5% standard rate – saving HK$165,000 at maximum threshold Regional Advantage:
📋 Key Facts at a Glance Tax Rate Gap: Hong Kong’s corporate tax is 8.25%/16.5% vs. Mainland China’s standard 25% rate Taxation Principle: Hong Kong uses
📋 Key Facts at a Glance Territorial System: Only Hong Kong-sourced IP income is taxable – offshore income generally exempt Tax Rates: Corporations pay 8.25% on