Profits Tax rates as from 2004/05 onwards:

(1) Normal rate

Corporations (businesses/companies incorporated according to the Companies Ordinance e.g. limited company):
17.5%

Unincorporated Businesses (businesses/companies NOT incorporated according to the Companies Ordinance e.g. sole-proprietorship or *partnership):
16%

(*If one of the partners in a partnership is a corporation, the profit tax rate on that partner is 17.5%)

(2) Concessionary rate

A tax rate at 50% of the normal profits tax rate will be applied to trading profits and interest income received or derived from qualifying debt instruments issued in Hong Kong , and to the offshore business of professional reinsurance companies.