Comparison
Hong Kong vs UAE (Dubai) Company: Offshore Tax Compared
Last updated · Reviewed by the Harbourline Corporate compliance team
| Headline corporate tax | HK 8.25%/16.5% · UAE 9% above AED 375k |
|---|---|
| 0% route | HK offshore-sourced profits · UAE qualifying free-zone income |
| VAT | HK none · UAE 5% |
| Physical substance | HK not required for offshore trading/services · UAE required for free-zone 0% |
Key differences
A UAE free-zone company usually needs office space and visas, and it must meet adequate-substance tests to keep the 0% rate. A Hong Kong offshore company can be run from anywhere, but the profits must genuinely be earned outside Hong Kong. Hong Kong also has no VAT, while the UAE charges 5% VAT on registered businesses.
Frequently asked questions
Should I choose Dubai or Hong Kong?
If you are moving to the UAE personally, a UAE company is often the natural choice. If you live elsewhere and trade globally, a Hong Kong company is usually simpler and cheaper to run at 0% on offshore profits.
Official sources
This guide is general information, not tax or legal advice. Hong Kong offshore status is decided by the Inland Revenue Department on the facts of each case, and your country of residence may tax you or the company.