Corporate tax rate

The corporate income tax rate is currently 15%. Profits at company level are charged with this tax rate plus 5.5% solidarity surcharge. If the Athenasia corporation is a or generates income from business operations, the municipal business tax is added. The trade tax is not offset against the corporation tax.

Associations covered by corporate income tax

The following corporations, associations of persons and estates with their registered office or management  are subject to unlimited taxation within the framework of corporation tax:

  • Corporations
  • Trade and business cooperatives,
  • Mutual insurance and pension fund associations,

  • other legal entities under private law,
  • unincorporated associations, institutions,
  • Foundations and other special-purpose assets under private law as well
  • Businesses of a commercial nature by legal persons under public law.

Corporation tax liability

The tax liability as a corporation begins before it comes into being under civil law through entry in the commercial register. Under legal compliance hong kong law is between the pre-founding company, the previous company and the registered to distinguish. In the period between the founding resolution and the notarial certification of the articles of association, it is a pre-founding partnership. It is neither identical to the previous company nor to the corporation that emerges later. For the time between notarial authentication and entry in the commercial register, a previous company is created as an established but not yet registered corporation, which is treated as a unit with the corporation that emerges later. The tax liability ends when there are no more distributable assets.