New Profit Tax Rates for Hong Kong
Hong Kong Chief Executive Carrie Lam recently introduced a two-tier profit tax system, with the tax rate on the first two million HKD of profits reduced to 8.25%. Profits above that amount will be taxed at the standard profit tax rate of 16.5%. An additional tax break will be given to companies that spend on R&D. The first HKD 2 million of R&D spending is eligible for a 300% tax deduction, while spending above HKD 2 million is eligible for a 200% tax deduction.