2007 Corporate Tax Information for Asia Pacific Region - Hong Kong 

2007 Tax Information (as of 31 Mar 2007)**	Hong Kong
Tax rates	17.5%.
Income not subject to tax	Offshore income; dividends; capital gains; interest on overseas and certain bank deposits; profits derived by non-resident offshore funds from certain qualifying transactions.
Non-deductible items.  In general include: Expenses not related to earning assessable income; capital expenses (although depreciation may be claimed on certain categories of assets) and income tax; additional items as listed.	General provisions; contributions to unrecognized occupational retirement schemes; donations in excess of 25% of assessable profits; fines and penalties; certain interest expenses that cannot pass the interest flow-back test or the secured loans test.
Tax incentives	Tax holiday not available; certain tax concessions (e.g. 50% tax rate reduction or full exemption on interests and profits derived from certain qualifying debt instruments; 50% tax rate reduction on the assessable profits of a corporation derived from the business of reinsurance of offshore risks as a professional reinsurer).
Loss treatment	Carry forward indefinitely; no group relief.
Are dividends received taxed?	No.
Taxes on capital gains on sale of assets	No.
Treaty network	China, Belgium and Thailand.
Stamp duty	0.2% on stock transactions; up to 3.75% on immovable property.
VAT/GST	No.

The above table was first published in the May 2007 issue of CFO Asia.
 
** The information contained in this table is for general guidance on matters of interest only and is not meant to be comprehensive.  The application and impact of laws can vary widely based on the specific facts involved.  Before taking any action, please ensure that you obtain advice specific to your circumstances from your usual PricewaterhouseCoopers client service team or your other tax advisers.

The materials contained in this table were assembled on 31 March 2007 and were based on the law enforceable and information available at that time.