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Fiscal Advantages

The Hong Kong taxation system is based on the territorial principle, which means that there are no residents and non-residents in Hong Kong for the taxation on income, and only the income received in the territory of Hong Kong or deriving from the activities performed in the territory of Hong Kong is subject to taxation.

Convenient Fiscal System.

The report «Paying Taxes 2010» was drafted by the specialists of PricewaterhouseCoopers (PCW), the World Bank and IFC. It reflects the state of tax payment in 183 states of the world. Hong Kong occupies the 3rd place in this rating, the first are being the Maldives and Qatar. To estimate the fiscal system of the state, PWC used the economic model of a company producing and selling a certain product. Basing on the activity of the company, the number and scope of taxes were estimated together with the time required for their payment.

Rating of the states by the level of simplicity of the fiscal system

State

Total number of the taxes

Time required for tax payment, hours per year

Complete tax rate, %

Rating of the state in 2008/2009

Alteration during a year

1

Maldives

1

0

9,1

1

 0

2

Qatar

1

36

11,3

2

-1

3

Hong Kong

4

80

24,2

3

 0

4

UAE

14

12

14,4

4

 0

5

Singapore

5

84

27,9

5

-3


Absence of the International Currency Exchange Control.

Exchange control and currency regulation in Hong Kong is regulated by SAR Hong Kong Basic Law (April 4, 1990). It was entered into force on 1 July 1997. Article 112 of Chapter 5 of the Basic Law defines the jurisdiction of the Hong Kong SAR as free of exchange controls. The Hong Kong dollar is a freely convertible currency. Due to the principle of free floating capital in Hong Kong the conducting of international banking operations needs the minimum paperwork.

The Legality of the origin of Hong Kong companies`assets have official evidence.

Legality of the origin of Hong Kong companies`assets have  official evidence, as the conducting of accounting, the annual auditor’s inspections, and presentation of the financial reports to the fiscal authorities are mandatory for all companies registered in the territory of Hong Kong.