Profits Tax
Profits arising in or derived in Hong Kong from operating any business or service are subject to tax (except profits arising from or losses incurred by the sale of capital assets). In contrast, no tax is levied on profits arising abroad, even if they are remitted to Hong Kong. Whether business is operated in Hong Kong and whether profits are derived from Hong Kong are mainly determined by operating facts.If a person sells his/her building or any property as part of a scheme of profit-making, it will be regarded as a "business" and he/she is required to pay tax on any profit he/she may make.
Profits Tax Rate
| Type of Company | Profits of the First HK$ 2 million | Profits above the amount (HK$ 2 million) |
| Limited company | 8.25% | 16.50% |
| Company in Sole Proprietorship or Partnership | 7.50% | 15% |
Basic Period
The financial year generally ends on 31 March or 31 December of each year, with a 12-month accounting period. However, the first accounting period for a newly set up company cannot exceed 18 months.Exemption
Dividends or investment yield received from companies that have paid profits tax are not included in assessable profitsInterest received on the deposits placed in authorised institutions is exempt from profits taxReduce the tax on profits for 2024/25 by 100% subject to a ceiling of HK$1,500*Note: * The tax measures proposed in the 2025-26 Budget are subject to the enactment of relevant legislation.Why Choose First Group?
- Professional and Efficient：With years of experience and familiarity with regulations in various regions, we ensure smooth business processes.
- One-Stop Service：Whether it's company formation, tax consulting, accounting services, or auditing, we handle everything for you, saving you time and effort.
- Customized Solutions：Whether you are a startup or expanding your business, we can tailor solutions to meet your needs.
Contact us now for a free consultation and the latest pricing information! Just prepare the basic information, and First Group will simplify the cumbersome procedures, allowing you to focus on realizing your business blueprint. Start today, succeed tomorrow!
