Location
The Hong Kong Special Administrative Region (SAR) of the People’s Republic of
China lies on the Southern coast of China at 22° 15 North latitude and 114° 10
East Longitude. Local time is 8 hrs ahead of GMT and 2 ½ hrs IST. The SAR is
composed of Hong Kong Island, Kowloon, the New Territories, and numerous
outlying islands, occupying a total area of approximately 1106 sq kms. Hong
Kong Island, the economic heart of Hong Kong Special Administrative Region,
comprises only 7% of the land area (81 sqkm); Kowloon (47 sqkms) is a densely
populated peninsula. The New Territories and the outlying islands occupy 88% of
Hong Kong’s land area.
Global
Services Centre
Civil aviation, shipping,
travel and tourism, trade-related services, and various financial and banking
services are the main components of trade in services.
Hong Kong draws more than 90
per cent of its GDP from the service sector. - services ranging from air
transport and shipping to contract manufacturing and software designing.
Exports of services gained growth momentum aimd robust inbound tourism and
thriving offshore trade. Indeed, the four pillar economic sectors of Hong Kong
are trade and logistics, tourism, financial services
Legal
System
Hong Kong has a liberal
investment regime. Hong Kong law is based on the British Common Law System. The
Court of Final Appeal, established on July 1, 1997 is the ultimate arbiter of
the development of the common law in Hong Kong.
Free
Trade & Free Market
Hong Kong advocates and
practices free trade — a free and liberal investment regime, the absence of
trade barriers, no discrimination against overseas investors, freedom of
capital movement, well established rule of law, transparent regulations, and
low and predictable taxation.
Taxation
Low tax regime Hong Kong taxes
are among the lowest in the world, and the tax regime is simple and
predictable. The corporate profits tax rate is 8.25% on assessable profits up
to $2,000,000; and 16.5% on any part of assessable profits over
$2,000,000. Hong Kong’s salary tax rates follow a progressive tax rate
system ranging between 2%and 17%. No tax is paid by firms or individuals
on foreign-sourced income of any kind, and there is no estate duty tax on
non-Hong Kong assets. Tax returns are short and easy to complete. Basically,
only company profits, salaries and property rental income are taxable. Hong
Kong does not tax dividends or bank interest. There is no capital gains tax,
VAT or sales tax.
For further information, please
visit: http://www.ird.gov.hk
Gateway
to China
Hong Kong is so far the most
important entrepôt of the Chinese mainland. Hong Kong is the largest source of
overseas direct investment in the Chinese mainland. The Chinese mainland, on
the other hand, is a leading investor in Hong Kong. Hong Kong is also a key
offshore capital-raising centre for Chinese enterprises.
Big lenders including the Bank
of China, Industrial and Commercial Bank of China, Agricultural Bank of China
and China Construction Bank have opened their branch operations in Hong Kong.
Mainland commercial banks including Bank of Beijing, Bank of Dongguan, China
Bohai Bank, China Guangfa Bank, Hua Xia Bank and Ping An Bank have
representative offices in Hong Kong.
Further
information
Invest Hong Kong: www.investhk.gov.hk
Hong Kong Trade Development
Council: www.hktdc.com
HKSAR Immigration
Department: www.immd.gov.hk
