Income Tax / Salaries Tax
- Hong Kong has a simple and straightforward income tax system
- Salaries tax at progressive rates ranging from 2% to 17%; however, the maximum tax will be limited to tax at the two-tiered standard rates (15% on the first HK$ 5 million of net income and 16% on the remainder)
- Taxpayers in Hong Kong only need to file an annual income tax return, known as the "Tax Return — Individuals", to report their total income and pay the required taxes
Profits Tax
- Corporations are subject to a two-tiered profits tax rate in Hong Kong: first HK$2 million in profits taxed at just 8.25%, while profits above that would be taxed at 16.5%
- Unincorporated businesses (partnerships/sole proprietorships) enjoy a corresponding two-tiered rate of 7.5% and 15%
- 300% super-deductions for R&D
- 5% concessionary tax rate on IP income under the "Patent Box" Regime
Property Tax
- Property owners pay 15% tax only on the assessed rental value of their properties - whether residential or commercial, including rental income. Property occupied by the owner for self-use is not subject to property tax
- No extra tax when you buy, sell, or own property
What You Don’t Pay in Hong Kong
In Hong Kong, you can pay less with our friendly rates.
- No sales tax or VAT
- No withholding tax on dividends and interest
- No capital gains tax or tax on capital gains
- No tax on dividends
- No estate tax
Free Trade Port
As a duty-free port with smooth customs, we make importing, exporting, and global trade of your business hassle-free.
