Employ Candidates Compliantly in Hong Kong

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  1. Overview: Hong Kong
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Hong Kong

Getting your business up-and-running in Hong Kong can be challenging, especially if you do not speak the native language. Establishing your own business entity in Hong Kong is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Hong Kong, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Hong Kong, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Hong Kong

Navigating the Hong Kong legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Hong Kong speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Hong Kong without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Hong Kong. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Hong Kong

Employment related taxes

Personal Income Tax (PIT). Hong Kong SAR does not impose income tax based on an individual’s total income. Instead, the three main types of income derived by individuals are taxed under different income taxes. That is, business or trading profits are taxed under profits tax, income from employment, office, or pension is taxed under salaries tax, and rental income from immovable property is taxed under property tax. The residence status of an individual is not a determinative factor in examining one’s liability to salaries tax except in a tax treaty context.

Corporate Income Tax (CIT). Hong Kong SAR adopts a territorial basis of taxation. Profits tax is payable by every person (defined to include corporation, partnership, and sole proprietorship) carrying on a trade, profession, or business in Hong Kong SAR on profits arising in or derived from Hong Kong SAR from that trade, profession, or business. In general, the tax residence of a person is irrelevant, and there is no distinction between residents and non-residents when it comes to liability to profits tax, except in a tax treaty context. Non-residents are chargeable to tax on profits arising in or derived from Hong Kong SAR unless they are from jurisdictions with which Hong Kong SAR has a tax treaty and they are protected by the treaty.

Corporate Income Tax (CIT). Hong Kong SAR adopts a territorial basis of taxation. Profits tax is payable by every person (defined to include corporation, partnership, and sole proprietorship) carrying on a trade, profession, or business in Hong Kong SAR on profits arising in or derived from Hong Kong SAR from that trade, profession, or business. In general, the tax residence of a person is irrelevant, and there is no distinction between residents and non-residents when it comes to liability to profits tax, except in a tax treaty context. Non-residents are chargeable to tax on profits arising in or derived from Hong Kong SAR unless they are from jurisdictions with which Hong Kong SAR has a tax treaty and they are protected by the treaty.

Payroll Cycle in Hong Kong

In practice, wages are paid on the last day of the agreed wage period, and wage periods are generally on a monthly basis, although some of the older local companies where manual labor is involved pay on a fortnight basis. If wages are not paid on the due date, an employer must pay as soon as practicable after that and in any event, not later than seven days after the end of the wage period.

Non-payroll taxes in Hong Kong

Hong Kong SAR does not have a VAT, goods and services tax, or sales tax.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Hong Kong

Compensating your local and expat workforce in Hong Kong and closely adhering to Hong Kong taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Hong Kong labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Hong Kong by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Hong Kong laws. To get the latest updates on taxation in Hong Kong and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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