Page 52 - 2017 Special Report
P. 52
o allow companies to claim offshore status, allowing Air 商是现代货箱码头有限公司、香港国际货柜码头有限公
them total tax exemption on profits sourced outside of 司、中远-国际货柜码头有限公司、杜拜环球港务以及
Hong Kong. The Hong Kong International Airport at Chek Lap 亚洲货柜码头有限公司。大约有800家香港从事船运业
Kok is the busiest airport in the world for international 务的企业提供综合海运服务，包括船舶登记、法律纠纷
All expenditures incurred in the generation of cargo. In 2015, HKIA handled 68.5 million passengers 解决服务、船舶融资和海运保险、船舶租赁和管理等。
assessable profits, including most interest costs, rent and 4.38 million tons of cargo. By 2040, efforts to expand
for office and factory premises, bad debts, and salaries the airport will increase its capacity to handle up to 87
and payments to approved pension schemes, are million passengers and nine million tons of cargo per
deductible from gross income. Sums paid out on capital year. The airport’s marine cargo terminal is linked with 18
expenditures are not tax deductible. Losses can be ports in the Pearl River Delta.
carried forward without any limits.
Rail
VAT and Withholding Tax
Recently, five new rail projects expanded Hong
Value-added tax (VAT) is non-existent in Hong Kong. Kong’s network by 35 percent to over 200 kilometers,
There is also no withholding tax in Hong Kong for profit with an increase in public transit service from 31 percent
repatriated back to the overseas parent company. to 39 percent. The city’s major rail projects include the
7.4 kilometer extension of the Kowloon-Canton Railway
Salary Tax (KCR) from SheungShui to Lok Ma Chau Spur Line and
the Guangzhou-Shenzhen-Hong Kong Express Rail Link
There are two ways of calculating salary tax in Hong worth US$8.6 billion.
Kong for the individual taxpayers who have assessable
income from employment: Ports and Waterways
(1) Progressive rate The Hong Kong port handles about 3/4s of Hong
Taken on a sliding scale (2-17 percent) against the Kong’s total cargo throughput and is among the world’s
taxpayer’s annual net chargeable income (i.e. less busiest container ports by cargo throughput. There
allowable deduction and personal allowances); and are nine container terminals in Kwai Chung-Tsing Yi
basin under the operation of five different operators,
(2) Standard rate namely, the Modern Terminals, Hong Kong International
15 percent based on the annual net income (i.e. less Terminals Ltd, COSCO-HIT, DP World and Asia Container
allowable deductions only). The final payable income Terminals Ltd. There are some 800 shipping-related
tax is the lower of the two tax liabilities. The maximum companies in Hong Kong that provide comprehensive
average tax rate in Hong Kong is thus 15 percent for maritime services including ship registration, legal and
the current tax year. Dividends received from any dispute resolution services, ship financing and marine
corporation enjoy tax exemption. insurance, and ship-ownership and vessel management.
Infrastructure
The city is currently undergoing an ambitious
transport infrastructure program, and has a recent
annual budget of HK$15.5 billion to be spent on major
road and railway projects.The entirety of this program
is expected to be completed in 2020. In addition, the
government has allocated HK$85 billion to infrastructure
construction in its 2016/2017 fiscal budget.
102 103
them total tax exemption on profits sourced outside of 司、中远-国际货柜码头有限公司、杜拜环球港务以及
Hong Kong. The Hong Kong International Airport at Chek Lap 亚洲货柜码头有限公司。大约有800家香港从事船运业
Kok is the busiest airport in the world for international 务的企业提供综合海运服务，包括船舶登记、法律纠纷
All expenditures incurred in the generation of cargo. In 2015, HKIA handled 68.5 million passengers 解决服务、船舶融资和海运保险、船舶租赁和管理等。
assessable profits, including most interest costs, rent and 4.38 million tons of cargo. By 2040, efforts to expand
for office and factory premises, bad debts, and salaries the airport will increase its capacity to handle up to 87
and payments to approved pension schemes, are million passengers and nine million tons of cargo per
deductible from gross income. Sums paid out on capital year. The airport’s marine cargo terminal is linked with 18
expenditures are not tax deductible. Losses can be ports in the Pearl River Delta.
carried forward without any limits.
Rail
VAT and Withholding Tax
Recently, five new rail projects expanded Hong
Value-added tax (VAT) is non-existent in Hong Kong. Kong’s network by 35 percent to over 200 kilometers,
There is also no withholding tax in Hong Kong for profit with an increase in public transit service from 31 percent
repatriated back to the overseas parent company. to 39 percent. The city’s major rail projects include the
7.4 kilometer extension of the Kowloon-Canton Railway
Salary Tax (KCR) from SheungShui to Lok Ma Chau Spur Line and
the Guangzhou-Shenzhen-Hong Kong Express Rail Link
There are two ways of calculating salary tax in Hong worth US$8.6 billion.
Kong for the individual taxpayers who have assessable
income from employment: Ports and Waterways
(1) Progressive rate The Hong Kong port handles about 3/4s of Hong
Taken on a sliding scale (2-17 percent) against the Kong’s total cargo throughput and is among the world’s
taxpayer’s annual net chargeable income (i.e. less busiest container ports by cargo throughput. There
allowable deduction and personal allowances); and are nine container terminals in Kwai Chung-Tsing Yi
basin under the operation of five different operators,
(2) Standard rate namely, the Modern Terminals, Hong Kong International
15 percent based on the annual net income (i.e. less Terminals Ltd, COSCO-HIT, DP World and Asia Container
allowable deductions only). The final payable income Terminals Ltd. There are some 800 shipping-related
tax is the lower of the two tax liabilities. The maximum companies in Hong Kong that provide comprehensive
average tax rate in Hong Kong is thus 15 percent for maritime services including ship registration, legal and
the current tax year. Dividends received from any dispute resolution services, ship financing and marine
corporation enjoy tax exemption. insurance, and ship-ownership and vessel management.
Infrastructure
The city is currently undergoing an ambitious
transport infrastructure program, and has a recent
annual budget of HK$15.5 billion to be spent on major
road and railway projects.The entirety of this program
is expected to be completed in 2020. In addition, the
government has allocated HK$85 billion to infrastructure
construction in its 2016/2017 fiscal budget.
102 103
