Hong Kong is one of the most known financial centers in the world. Hong Kong is located in China’s Pearl River Delta. The main languages spoken in Hong Kong are English and Chinese. Hong Kong is one of the world’s leading tax havens and also a principal offshore jurisdiction. Offshore Hong Kong offers incorporation of offshore companies, the registration of vessels and boats, offshore insurance, investment management among other services.
The tax havens of the world have the same basic features; zero or low taxation schemes, they provide services mainly to non residents of the respective jurisdictions, have high levels of privacy and confidentiality in place for clients and provide financial services.
The tax haven of Hong Kong has an excellent tax regime in place. In the offshore tax haven of Hong Kong tax is based on territory rather than annual profits. The profits paid by an offshore company in the tax haven of Hong Kong will be paid only on profits derived from carrying out business, trade or any type of profession in the jurisdiction. Income gained abroad is no taxed. Hong Kong companies interests, capital gains and dividends are not subjected to any form of taxation. Hong Kong Companies have their business operations both in and out of the jurisdiction. Companies conducting business operations in the low tax haven of will pay taxes on their annual profits. Taxes for such companies are fixed at 17.5%. The presence of a low tax scheme has precipitated an escalation in the number if international companies setting upbranches in Hong Kong.
The tax haven of Hong Kong is very popular for offshore banking. Hong Kong has some of the top offshore and onshore banks of the world doing business in the territory. Tax haven Hong Kong provides the ideal environment for creating offshore bank account. Hong Kong offshore bank accounts are easy to set up. The interest accumulated by Hong Kong offshore bank accounts are not taxed making it easier for investments to grow. Hong Kong offshore banks must follow international standards and must know the identity of offshore bank account holders. The tax haven of Hong Kong is strict about providing privacy for offshore bank account holders. An added bonus for setting up a bank account in the low tax haven of Hong Kong is that the territory is well known for providing efficient banking services.
The low tax haven of Hong Kong provides privacy and confidentiality for the companies incorporated in the jurisdiction. Companies in tax haven Hong Kong are not obligated to prepare financial statements with any authority in Hong Kong. Hong Kong companies have to file annual accounting records with the tax authorities of the jurisdiction. Hong Kong Corporation however is advised to keep accounting records for the use and benefit of the Hong Kong companies. Every company incorporated in Hong Kong must take on an auditor who must be a recognized member of the Hong Kong Society of Accountants.
Hong Kong as a tax haven provides additional privacy for corporations. In the tax haven of Hong Kong companies can be registered using nominee corporate directors and shareholders. This will protect the identity of the beneficial owners of Hong Kong companies. The names of the beneficial owners of Hong Kong Companies are not filed with the Registrar of Companies. This means therefore that this information does not become public record.
Tax haven Hong Kong has no exchange controls in place which is a plus for Hong Kong companies. This allows corporations incorporated in Hong Kong to engage in trade with little restrictions as possible. The movement of funds is made easier where there is no exchange controls in place. The tax haven of Hong Kong has signed double tax treaties with certain countries for taxation relief on airline and shipping. Hong Kong as a tax haven has double tax treaties with Thailand and Belgium which is applied to relief taxation on income. In general business companies incorporated in tax haven have no problems with double taxation.
The tax haven allows for the incorporation of international companies and the setting up of offshore bank accounts by both individuals and corporations. There are no restrictions on the nationalities that are allowed to incorporated companies or set up bank accounts in tax haven Hong Kong. Although at present Hong Kong has corporate taxes in place the jurisdiction still provides corporations and individuals with a means of reducing tax liabilities since the tax rate is much lower than many other countries.
The tax haven of Hong Kong provides privacy and confidentiality for bank account holders and corporations. Information regarding persons who hold Hong Kong accounts and corporations is highly protected. Tax haven Hong Kong is one of the major financial and business centers of the world and at present has no estate tax.