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Hong Kong: Domestic Corporate Taxation

Withholding Tax

There are no withholding taxes in Hong Kong as such, but there are certain circumstances in which a company making a payment to a foreign associate (subsidiary or holding company) which is deemed to be Hong Kong source income needs to needs to withhold the tax.

For instance, when a Hong Kong entity pays royalties for the use of intellectual property to its own offshore licensing affiliate, then tax is due of 30% of 16.5% = 4.95% (4.5% for an unincorporated business) and this must be withheld by the Hong Kong paying company.

 

 

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