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0% Tax on Territorial Tax Principal
Hong Kong is ideal location for a company trading throughout Asia or with People Republic of China. Hong Kong operates on territorial taxation principal, i.e. taxes are not imposed if the Hong Kong company does not trade in Hong Kong (doesn’t have any Hong Kong based suppliers or clients), does not have a physical office in Hong Kong (although a virtual office can be featured) and does not have local employees. The company though may freely have a Hong Kong bank account and Hong-Kong director and secretary – and still enjoy a tax free status.
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