According to Alliott Group Hong Kong member Lawrence Cheung CPA Company, new tax changes are being proposed for 2018 that will make Hong Kong more competitive internationally and support the SME business sector.
In her first policy address, Mrs. Carrie Lam, Chief Executive of Hong Kong SAR, set out her proposed tax changes for Hong Kong. These include a two-tier profits tax rates regime to benefit SME companies, with the first HK$2 million (= US$0.256 million) of profits earned by a SME company within the same group being subject to a lower profits tax rate of 8.25% (as opposed to the previous rate of 16.5%). Another proposed change will be a tax deduction for Research & Development (R&D) expenditure.
To read more about these proposed tax changes, go to https://www.alliottgroup.net/practice-management-resources-for-owner-managed-firms/proposed-hong-kong-tax-reforms-2018/
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