Whether to pay taxes for entrepot trade in Hong Kong depends on the situation. Hong Kong mainly levies profits tax, salaries tax and property tax. The one related to entrepot trade is mainly profits tax.
If the entrepot trade activities meet the relevant regulations and the profit is not sourced locally in Hong Kong, according to the territorial source principle of taxation in Hong Kong, exemption from profits tax can be applied for. The enterprise needs to submit an application to the Inland Revenue Department of Hong Kong and provide detailed information on business operations, such as contracts, invoices, shipping documents, etc., to prove that the source of profit is not in Hong Kong.
If the profit is sourced locally in Hong Kong, then profits tax needs to be paid as required. At present, the two - tier tax rate system is implemented for Hong Kong profits tax. For corporations, the tax rate for the first HK$2 million of assessable profits is 8.25%, and for the part exceeding HK$2 million, the tax rate is 16.5%. For unincorporated businesses, the tax rate for the first HK$2 million of assessable profits is 7.5%, and for the part exceeding HK$2 million, the tax rate is 15%.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Whether to pay taxes for entrepot trade in Hong Kong depends on the situation. Hong Kong mainly levies profits tax, salaries tax and property tax. The one related to entrepot trade is mainly profits tax.
If the entrepot trade activities meet the relevant regulations and the profit is not sourced locally in Hong Kong, according to the territorial source principle of taxation in Hong Kong, exemption from profits tax can be applied for. The enterprise needs to submit an application to the Inland Revenue Department of Hong Kong and provide detailed information on business operations, such as contracts, invoices, shipping documents, etc., to prove that the source of profit is not in Hong Kong.
If the profit is sourced locally in Hong Kong, then profits tax needs to be paid as required. At present, the two - tier tax rate system is implemented for Hong Kong profits tax. For corporations, the tax rate for the first HK$2 million of assessable profits is 8.25%, and for the part exceeding HK$2 million, the tax rate is 16.5%. For unincorporated businesses, the tax rate for the first HK$2 million of assessable profits is 7.5%, and for the part exceeding HK$2 million, the tax rate is 15%.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If the goods are only transiting in Hong Kong and no substantial processing or value - added occurs in Hong Kong, generally no additional entrepot trade tax will be generated, but relevant documents and materials should be kept well for inspection by the tax authorities.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Pay attention to the special regulations of Hong Kong on different goods. For some specific commodities, even in entrepot trade, relevant taxes may be involved, such as tobacco and alcohol.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Although the tax policy in Hong Kong is relatively simple, entrepot trade involves multi - party transactions. It is recommended to consult a professional tax advisor and make tax planning in advance.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In the process of entrepot trade, the customs declaration link is very important. Declare the goods information truthfully, otherwise it may lead to tax risks and other troubles.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In addition to considering Hong Kong itself, also pay attention to the tax policies of the place of origin and destination of the goods to avoid double taxation.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If a company is set up in Hong Kong for entrepot trade, accounting and auditing shall be carried out as required, which has an important impact on tax treatment.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The supervision of trade activities in Hong Kong is relatively loose, but this does not mean that tax compliance can be ignored. Compliance operation is the long - term solution.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade involves links such as logistics and transportation. Pay attention to the tax relevance in the transportation process. Some port handling fees, etc., may involve taxes.