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Hong Kong's tax system

Hong Kong's tax system is simple and predictable.

· Corporate profits tax rate is 16.5%.
· Personal tax is also among the lowest in the world at about 15.5% (the rate will be increased to 16% in assessment year 2004/05). And there are no hidden "extras."
· Only income and profits derived direcly from Hong Kong are subject to tax;
· There is no tax on capital gains, dividends or interest;
· Generous capital allowance and depreciation regulations;
· Hong Kong has no sales tax or Value Added Tax.