Hong Kong has remained an attractive city for businesses thanks to favourable taxation policies. For example, businesses who turn an annual profit of less than HK$ 2,000,000 will only be required to pay a tax of 8.25%, half the normal HK tax rate. The Inland Revenue Department has released several tax measures in its 2021-22 budget, including reducing profits tax for businesses, waiving business registration fees, and increasing the rate of ad valorem stamp duty. In addition, the IRD has issued policies regarding Double Taxation Relief, which is particularly helpful if your business is related to airline or shipping incomes.