Hong Kong operates a territorial tax system: profits from sources outside Hong Kong are in principle tax-free. Since 2023, however, foreign dividends, interest and disposal gains of a company with holdings abroad become taxable as soon as they are received in Hong Kong, unless the company has real substance there or, for dividends and disposal gains, has held at least 5% for at least twelve months. Beyond that, Hong Kong levies no capital gains tax, no inheritance tax, no dividend tax and no wealth tax. This makes Hong Kong one of the most tax-efficient locations in the world for international holding structures.
Hong Kong serves as a gateway to Chinese and Asian markets and offers access to one of the deepest and most liquid capital markets in the world. The combination of tax efficiency, an international legal system and geographical closeness to Asia makes the Hong Kong FIC a compelling structure for globally minded investors.
Advantages of the Hong Kong FIC
- Profits from sources outside Hong Kong tax-free in principle (with substance or the participation exemption, also after remittance)
- No capital gains tax, inheritance tax, dividend tax or wealth tax
- Gateway to Chinese and Asian markets
- Access to one of the deepest capital markets in the world
- Robust asset protection through holding structures
- Clear separation of personal and business assets
- International recognition and legal certainty
Bookkeeping, audit and tax return
Despite its tax efficiency, every Hong Kong company is required by law to keep full accounting records, to have its annual accounts audited by a certified public accountant and to file an annual profits tax return with the Inland Revenue Department (IRD). We can take care of all bookkeeping, accounting and audit services through our partners, on request and for a separate fee.
Who is the Hong Kong FIC for?
The Hong Kong FIC suits Asia-focused entrepreneurs and investors who want to benefit from one of the most tax-efficient financial centres in the world while having direct access to Chinese and Asian markets.
Engage us now ← All international FICs