Other Useful Infomation -- P.1

Other Useful Information

		[P.1 Profits tax] [P.2 Salaries tax] [P.3-4 Government fees]
Hong Kong Profits Tax Information Extract

Profits tax		2017/2018		2016/2017
Income exempted from profits tax:		1.	Profits not sourced in Hong Kong	1.	Profits not sourced in Hong Kong
		2.	Capital gains	2.	Capital gains
* Start from 22/6/1998 and the bank deposits were not used to secure bank facilities		3.	Dividends	3.	Dividends
		4.	Bank interest*	4.	Bank interest*

Profits tax rate
-	Corporation	16.5%		16.5%
-	Unincorporated business	15%		15%
Deemed taxable income on royalties by non-residents		30 or 100%		30 or 100%

Depreciation allowances
-	Plant and machinery and furniture and fixtures in general	60% initial allowance and 10-30% annual allowance		60% initial allowance and 10-30% annual allowance

-	Manufacturing plant and machinery; computer hardware and software	100% write-off (except under hire purchases then calculated as above)		100% write-off (except under hire purchases then calculated as above)

-	Commercial buildings	4% per annum		4% per annum
-	Industrial buildings	20% initial allowance and 4% annual allowance		20% initial allowance and 4% annual allowance

Tax deductions allowed:		1.	All business expenses in general	1.	All business expenses in general
		2.	Capital investment in research and development (exclude land and buildings)	2.	Capital investment in research and development (exclude land and buildings)
		3.	Previous unrecouped losses to set off future profits	3.	Previous unrecouped losses to set off future profits

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