Hong Kong's tax system is among the friendliest in the world, with only three direct taxes as well as generous allowances and deductions that reduce your taxable amount.

The only three direct taxes that Hong Kong imposes are:

• An 8.25% profits tax for the first HK$2 million of a corporation's profits, and a 16.5% tax on profits above that amount. For unincorporated businesses (i.e. partnerships and sole proprietorships), these two-tiered tax rates are 7.5% and 15%;
• A 15% salaries tax; and
• A 15% property tax.

In comparison, here's a list of the direct taxes that businesses in Hong Kong do not need to worry about:

• No sales tax or VAT;
• No withholding tax on dividends and interest;
• No capital gains tax;
• No tax on dividends; and
• No estate tax.