The Inland Revenue (Amendment) (No. 3) Ordinance 2018 was gazetted on 29 March 2018 in Hong Kong to implement the two-tiered profits tax regime to take effect on 1 April 2018. The key objectives of the change in the profit tax regime are to maintain a competitive tax system to promote economic development and to maintain a simple low tax regime. The introduction of the twotiered profit tax regime will:

 Reduce the overall tax burden for small and medium enterprises (“SME”) and start-ups;
 Allow enterprises to reinvest the tax saving to upgrade their hardware and software to boost their overall business operations and efficiency;
 Drive economic growth, create job opportunities and enhance Hong Kong’s competitiveness;
 Boost Hong Kong status as the preferred investment jurisdiction.

The two-tiered profits tax regime will apply to both corporations and unincorporated businesses (i.e., sole proprietorships and partnerships) and will apply with effect from the year of assessment 2018/2019 (i.e., commencing on or after 1 April 2018).


If you wish to understand more on the two-tiered profits tax regime, please feel free to approach:

Ms. Peggy Fung – Email: peggy.fung@acutus-hk.com
Ms Winifred Yue – Email:winifred.yue@acutus-hk.com


Click here to view the full article in pdf format.


DISCLAIMER: This article is issued exclusively for the general information of clients and staff of Acutus. The material should not be relied upon without appropriate professional advice. Acutus will not be liable for any loss or damage arising out of or in connection with the material contained in this publication. © April 2018. This article is contributed by Acutus Tax & Corporate Services Limited. All rights reserved.

Leave a Reply

Your email address will not be published. Required fields are marked *