Hong Kong

General Information

Advantages:

No CGT
No VAT
No Customs duties
No Capital duty
No CFC (controlled foreign company) legislation
HK resident companies are not taxed on the worldwide income
40 DTT
Non-public registers (UBO are not disclosed)

Disadvantages:

Accounting and returns
Transfer pricing regime and documentation
‘Hybrid’ offshore jurisdiction

Hong-Kong is a special administrative region of China that enjoys wide powers in the sphere of legislation, justice, and general internal policy. Such autonomy was granted to Hong-Kong as a result of the Sino-British Joint Declaration, which proclaims the almost-independent status of Hong-Kong till 2049th year.

Being a business-oriented state, there are two official languages in Hong-Kong: English (well-known among citizens) and Chinese. Hong-Kong is a highly developed country with a strong governmental policy of ‘non-interference to private (including business) matters’.

Hong-Kong may boast of its high Human Development Index (according to the latest Report – 7th place in the world) as well as of attractiveness for both foreign and national investors. In the last World Bank survey ‘Doing Business 2019’ Hong Kong is titled as a very easy-to-run-business region and for its low tax regime and clear, non-demanding corporate legislation it has obtained the 4th place in the global rating.

Having been a British colony for approximately 156 years, Hong-Kong has partly inherited a common law system mixed with local legislation codified in the Laws of Hong-Kong.

Hong-Kong is an active participant in international community activities, as it is a member of APEC (Asia Pacific Economic Cooperation) and WTO.