Does Hong Kong have VAT or sales tax? What taxes do businesses pay?

The Financial Services and the Treasury Bureau's statement of prevailing tax policy says there is no value-added or sales tax, no capital gains tax, no withholding tax on dividends and interest, and no estate duty. Income is taxed under three headings in the Inland Revenue Ordinance:

• Profits tax on business profits arising in or derived from Hong Kong.
• Salaries tax on income from employment or an office.
• Property tax on rental income from land and buildings.

What you will still deal with:

• Stamp duty on property transfers, leases and Hong Kong stock transfers.
• Business registration fee and levy (administered by the Inland Revenue Department (IRD)).
• Rates and government rent on property (separate from the above).
• Employer duties, such as reporting employee pay to the IRD and Mandatory Provident Fund (MPF) contributions.

Because there is no VAT, Hong Kong invoices do not carry a tax line and there are no periodic sales tax returns. If you sell to customers in countries that do have VAT or GST, you may have registration or collection duties there; that is decided by those countries' rules, not Hong Kong's.