The Inland Revenue Ordinance (Cap. 112) is Hong Kong's primary direct tax law, which enforces a low-rate territorial system that only taxes profits, salaries, and property income sourced directly within the region while levying no capital gains, dividend, or sales taxes. Read more

The document serves as a legal and operational guide for retail and compliance in Hong Kong. It covers regulatory details, reporting obligations, retail processes, and business registration. It highlights the absence of fiscalization, mandatory forms, penalties, and developments in e-invoicing, ensuring comprehensive compliance for retailers. Read more

In this overview, we present the basics of Hong Kong: a non-fiscal country with no mandatory POS certification, hardware requirements, or tax authority communication, but businesses must issue receipts as proof of purchase. Read more

The document serves as a legal and operational guide for retail and compliance in Hong Kong. It covers regulatory details, reporting obligations, retail processes, and business registration. It highlights the absence of fiscalization, mandatory forms, penalties, and developments in e-invoicing, ensuring comprehensive compliance for retailers. Read more

The Q&A document is an essential resource that provides clear answers to the most frequently asked questions in retail. It saves valuable time by consolidating complex information into a practical and accessible format. Prepared by our team of experienced experts, it addresses key issues such as document types, business processes, the registration process, and the applicable laws and regulations. Read more

E-invoicing in Hong Kong is voluntary and requires no government pre-approval. B2B invoices can use standard formats like PDF with buyer consent, while B2G invoices must be submitted via the government portal in XML/ZIP format. Digital signatures are optional, but all invoices must be archived for seven years. Read more

This document is about a common digital payment method in Hong Kong and how the country is using this payment method in retail. Read more

The purpose of this document is to emphasize the most important characteristics and requirements regarding receipts, invoices, return policies, online sales, record keeping, cash registers, VAT recording, penalties, and store registration in the system of Hong Kong. Read more

The Trade Descriptions Ordinance protects consumers and ensures fair market competition in Hong Kong by criminalizing false product descriptions, unfair sales tactics, and trademark counterfeiting under penalty of heavy fines and imprisonment. Read more

The Business Registration Ordinance (Cap. 310) mandates that anyone operating a commercial activity or trade in Hong Kong must register their business within one month of starting operations, regulating the integration of this process with company incorporation alongside the collection of fees and enforcement of compliance. Read more

The Consumer Goods Safety Ordinance (Cap. 456) legally requires suppliers to ensure general consumer goods are safe and empowers authorities to enforce compliance through product recalls and penalties. Read more

Inland Revenue Department confirmed that Pillar Two top-up tax filings in Hong Kong will be mandatory via an electronic portal from January 2026. In-scope Part 4AA entities must submit notifications and returns through the new Pillar Two Portal, accessed via the Business Tax Portal (BTP), using an organisational e-cert with AEOI functions. While Pillar Two applies to fiscal years starting 1 Januar... Read more

The Hong Kong Inland Revenue Department has announced a reduction in the annual interest rate on Tax Reserve Certificates from 0.8000% to 0.7167%, effective November 4, 2024. These certificates earn simple interest calculated monthly from the purchase date until tax payment, with interest credited only when the certificates are used for tax payments. The new rate applies to certificates purchased... Read more

On October 23, 2024, the Legislative Council of Hong Kong SAR approved the Rating (Amendment) Bill 2024, which introduces a progressive rating system for domestic tenements with a rateable value (RV) exceeding HKD 550,000, effective from the fourth quarter of the 2024-25 fiscal year. For properties with an RV of HKD 550,000 or less, the rate remains at 5%. The new system will charge 5% on the firs... Read more