Hong Kong is situated on the south east coast of China. It has a total land area of approximately 1,000 square kilometers. That land area comprises a number of islands, including Hong Kong island itself, and a portion of mainland China. Hong Kong has a population of approximately six million. Local time is eight hours ahead of Greenwich Mean Time.
History and Government
Hong Kong became a Special Administrative Region (SAR) of the People's Republic of China on July 1, 1997, after a century and a half of British administration. Under Hong Kong's constitutional document, the Basic Law, the existing economic, legal and social system will be maintained for 50 years. The SAR enjoys a high degree of autonomy except in defence and foreign affairs.
Legal System
The law of Hong Kong is based on English Common Law. The Hong Kong Court of Final Appeal is the highest court in the Region.
Taxation
Hong Kong tax is based on the "territorial" or "source" concept. Thus, as a general rule, Hong Kong tax is only levied on income or profit derived from within Hong Kong. Hong Kong sourced income can be taxed in three ways. These are:
There is no tax on capital gains nor is there any form of dividend or withholding tax.
