There is only one kind of tax for a HK company i.e. Profits Tax which is at 16.5% on its assessable profits. There is no VAT, and no tax on dividend or interest income in HK. Basically a HK company is not subject to HK taxes if its operations are not carried out in HK. The location of where a company’s activities take place is the key to whether a company’s profits are taxable in Hong Kong. If profits are earned from activities that take place entirely outside of Hong Kong, then these profits would not be taxable even if the company’s transactions are carried out through the company’s Hong Kong bank account.
For illustration, a Hong Kong trading company with an account in Hong Kong wouldn’t become subject to Hong Kong taxes if:
The organization’s merchandise don’t enter Hong Kong.
Profits tax is levied at a rate of 16.5% on taxable profits arising from activities taking place in Hong Kong. Deductions and exemptions are given for business expenses that are incurred in earning the assessable profits and income.