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Income tax is considered low, my brother pays about 1% annual income tax each year, coorporation tax maximum is 17% and sales tax is 0%.
 

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yeahh n hk has a duty-free port which means its imports are cheaper than many other countries e.g. UK has 17.5% VAT. Specialised goods such as Cigaretts and Acohol has some kind of tax though however it is relatively low compared to many countries.
 

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Monkey said:
How much are....

1) Income tax?
2) Corporation tax?
3) Sales tax?
all these taxes are relatively low in hong kong. a significant portion of government's revenue is from stock market and real estate transactions.
 

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16% standard rate means that it is the highest tax rate chargeable regardless of your income. Everybody has a basic allowance of HK$100,000, i.e. this number will be subtracted from your annual income for tax rate calculations. On the first $35,000, a 2% tax will be charged, and on the second $35,000 a 7% will be charged. On the next $35,000 a 13% will be charged and for the remainder you will be charged 19%.

Assuming that you cannot claim any allowance, you will only be taxed 16% when you have an income of at least a little over HK$1,200,000.

http://www.ird.gov.hk/eng/pdf/pam61e.pdf
 

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And I believe income tax's not deducted from your paycheck, right? So you get your full pay to spend until tax time.
 

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yeah, but it might be smart to leave some money in the bank, or else it will be a poor month when its time to pay taxes :)
 

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Well, the United States is near 40% for the upper limit. And anybody who is self employed must pay 16%. Think HK is good for the small business owner.
 

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Discussion Starter · #11 ·
Rachmaninov said:
16% standard rate means that it is the highest tax rate chargeable regardless of your income. Everybody has a basic allowance of HK$100,000, i.e. this number will be subtracted from your annual income for tax rate calculations. On the first $35,000, a 2% tax will be charged, and on the second $35,000 a 7% will be charged. On the next $35,000 a 13% will be charged and for the remainder you will be charged 19%.

Assuming that you cannot claim any allowance, you will only be taxed 16% when you have an income of at least a little over HK$1,200,000.

http://www.ird.gov.hk/eng/pdf/pam61e.pdf
Thanks for the explanation. :eek:kay:
 
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