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Hong Kong is a territory which offers a low tax regime governed by the “territorial principle” under which only income arising in or derived from Hong Kong is taxable. There are three main kinds of tax which are levied each year: profits tax, salaries tax and property tax.

If an individual carries on a trade, takes paid employment, or receives rental income from properties then he is obliged to pay tax. The taxpayer can be assessed separately for profits tax, salaries tax and property tax respectively, or he may try and reduce his tax liability by electing to receive a single personal assessment according to circumstances.

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