Hong Kong SAR

Foreign tax credits

Foreign tax credits are available if foreign taxes are payable/paid by a Hong Kong tax resident on income derived from a jurisdiction that has entered into a CDTA with Hong Kong SAR and the same income is subject to tax in Hong Kong SAR. Taxpayers are required to take all reasonable steps to minimise the foreign tax payable before making a claim for tax credit in Hong Kong SAR. See the Withholding taxes section for a list of jurisdictions that have entered into a CDTA with Hong Kong SAR.

For foreign taxes payable/paid by a Hong Kong tax resident on specified foreign-sourced income deemed taxable under the refined FSIE regime, foreign tax credits are available irrespective of whether or not the foreign taxes are paid in a jurisdiction that has entered into a CDTA with Hong Kong SAR. Taxpayers are also required to take all reasonable steps to minimise the foreign tax payable before making a claim for tax credit in Hong Kong SAR.

Foreign investment incentives

Hong Kong SAR does not have any specific incentives for foreign investment, except that offshore funds may be exempt from profits tax under certain circumstances.

Other tax incentives

Please refer to the Taxes on corporate income section for other tax incentives that can be enjoyed by both foreign and Hong Kong companies.