Accessibility Links

Low and simple tax regime

Hong Kong has a simple, predictable and low tax system. The city only imposes three direct taxes, and filing taxes is straightforward.

According to the 2016 Paying Taxes* study of 189 economies, Hong Kong has one of the most tax-friendly economies in the world. Why? The city only imposes three direct taxes and has generous allowances and deductions which reduce your taxable amount.

Low and simple tax regime
  • Profits tax is capped at 16.5 percent
  • Salaries tax is a maximum of 15 percent
  • Property tax is 15 percent

More important are the taxes that Hong Kong does not impose:

  • No sales tax or VAT
  • No withholding tax
  • No capital gains tax
  • No tax on dividends
  • No estate tax

The ease of submitting tax returns is another attractive part of Hong Kong’s business environment. Many people complete their tax returns themselves – a simple process – and can submit them online. Others rely on Hong Kong’s many accountancy firms, large and small, for cost-effective tax services and advice.

Free trade port

Hong Kong is known for its free port status and easy customs procedures. Duty is paid on very few products, for example, tobacco. One major recent change has been to make the import of wine and beer duty free. This has encouraged a thriving wine import, export and storage business serving retail and individual buyers.

*Paying Taxes is a study commissioned by the World Bank and IFC which measures the ease of paying taxes across 189 economies worldwide. It covers both the cost of taxes and the administrative burden of tax compliance.

Act Now Our team is happy to help and will answer any questions you may have:

Want to know more?

Visit the forum and engage with our friendly & knowledgable business set up community for help and advice.

Visit our Why HK Forum

Contact General Enquiries

Pass it on