Accounting Rules

Tax Year: The financial year starts on 1st January and ends on 1st April.
Accounting Standards: Not having the force of law, the notification elaborated by the HK Public Accountants Association (Financial Reporting Standards Committee) determines the guideline to be considered for the interpretation and application of the accounting principles and which should be followed in this regard by the members of the profession.
Hong Kong Accounting Standards (HKAS)
Accounting Regulation Bodies: HK Institute of Certified Public Accountants
Accounting Reports: BALANCE SHEET: on December 31 n, to be compared December 31 n-1 FIXED ASSETS CURRENT ASSETS Stocks Marketable securities Debtors Cash CURRENT LIABILITIES Obligations under finance leases Proposed dividends Taxation Creditors Loans and bank overdrafts NET CURRENT ASSETS LONG TERM LIABILITIES Deferred taxation Obligations under finance leases Bank loans SHAREHOLDERS EQUITY Share capital Reserves Retained profits PROFIT AND LOSS ACCOUNT: 1) Turnover 2) Profit before tax 3) Tax 4) Retained profits at the beginning of the fiscal year 5) Dividends 6) Retained profits at the end of the fiscal year.
Publication Requirements: Annual Publication.
Professional Accountancy Bodies: The Institute of Financial Planners of Hong Kong
The Society of Chinese Accountants and Auditors
Association of Chartered Certified Accountants HK
Certification and Auditing: Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact KPMG, Ernst&Young, Pricewaterhouse coopers.
Accounting News: Accounting news in HK

Tax Rates

Consumption Taxes

Nature of the Tax: There is no consumption tax in Hong Kong.
Other Consumption Taxes: None

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Corporate Taxes

Company Tax: 16.5%
Tax Rate For Foreign Companies: Only incomes generated in HK are subjected to taxation (rate of 16.5% and 15% for unincorporated businesses).
Capital Gains Taxation: Long term capital gains are not taxed in Hong Kong.
Main Allowable Deductions and Tax Credit: Expenses are deductible.
Other Corporate Taxes: Stamp duties, registration fees for trading activity, taxes on occupation of landed properties.

Individual Taxes

Tax Rate

Income Tax	Progressive rate from 2% to 17%
From HKD 0 to 40,000	2%
From HKD 40,000 to 80,000	7%
From HKD 80,000 to 120,000	12%
More than HKD 120,000	17%

Allowable Deductions and Tax Credit: The allowances are meant only for persons who have chosen the progressive taxation method.
For further information on deductions, visit the website of the tax authority.
Special Expatriate Tax Regime: No specific tax regime for expatriate.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: IRD
Withholding Taxes: Dividends: 0, Interest: 0, Royalties:4,5% / 15% (for nonresident individuals ) 4,95% / 16,5% (for nonresident companies).

Sources of Fiscal Information

Tax Authorities: Tax Authority
Other Domestic Resources: Tax information
Invest HK

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Intellectual Property

National Organizations: Intellectual Property Department for patents and trademarks
Regional Organizations: Consult the list of the Intellectual Property Department
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent Patent Ordinance 1997	20 years
Trademark Trade Marks Ordinance 1874	7 years, renewable for 14 years
Design Registered Designs Ordinance, chapter 522 of the laws of Hong Kong	5 years,renewable 4 times, that is for 25 years maximum.
Copyright Copyright Ordinance 27 June 1997, chapter 528 of the Laws of Hong Kong	50 years	WIPO Copyright Treaty

Legal Framework

Independence of Justice: Yes
Equal Treatment of Nationals and Foreigners: Yes
The Language of Justice: English or Cantonese, or in both the languages at the same time.
Recourse to an Interpreter: Possible.
Sources of the Law and Legal Similarities: Hong Kong's judicial system continues to be based on the English Common Law and the Rules of Natural Justice of Great Britain. In order to maintain a strong autonomy on the judicial system, HK-SAR shows its attachement to the primacy of the "rule of law" as the fundamental law. The judicial system works independently of the system of mainland China.
Checking National Laws Online: Bilingual Laws Information Database
Basi Law full text

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Standards

National Standards Organizations: Innovation and Technology Commission (ITC)
Integration in the International Standards Network: International Standards Organisation(ISO),
International Electronic Commission (IEC).
Pacific Area Standards Congress (PAS)
APEC Sub-committee.
Online Consultation of Standards: List of different standards on the ITC website.
Certification Organizations: List of different organisations

Business Practices

General Information: Kwintessential
Opening Hours and Days: Banks close on Saturday afternoon and Sunday. Government offices close on Saturday and Sunday.
Stores close at 2200 hrs. They remain open sometimes even on Saturday and Sunday. Companies close at 1800 hours.

Public Holidays

New Year	1st January
Lunar New Year	4 days, date varies every year based on the moon (between mid-January and mid-February).
Good Friday	The Friday before Easter (in March or April)
Easter Monday	in March or April
Buddha Anniversary	May
Labor Day	1st may
Ching Ming Festival	5 April
Tuen Ng Festival	In May or June
HKSAR Establishment Day	1st July
National Day	1st October
Lu Pan Birth Anniversary	In July
Maidens Festival	In August
Liberation Day	In August
Mid-Autumn festival	In September or October
Cheung Yeung Festival	In October

Holiday Compensation: When a public holiday falls on a Sunday or on the same day as another holiday, the next day is a day off. Sometimes the government will select the day before as an off-day.

Periods When Companies Usually Close

Chinese New Year

one week in January or February

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Hong Kong: Business Environment