Accountancy in Hong Kong

>> Withholding Taxes in Hong Kong

Royalties

Royalties are taxable in Hong Kong if they are related to the use, or right to use, in Hong Kong of any patent, design, trade mark, copy right material or other property of a similar nature.

The assessable profit is deemed to be 30% of the sum paid to the non-resident who is not connected with the payer and 100% if connected. The withholding tax is computed at 16.5% of the deemed assessable profits. The tax (4.95% for third party or 16.5% for connected party) is to be withheld by the payer for payment on behalf of the non-resident (as its agent in Hong Kong) to the Inland Revenue Department in Hong Kong.

There are no withholding taxes on interest and dividends which are not taxable in Hong Kong.


Latest version updated 24th October 2017

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