General Taxes in Hong Kong

Information on taxes in Hong Kong: general taxation on income, how it's calculated, when to pay tax, what exemptions there are and more...

The taxation system is administered by The Hong Kong Inland Revenue Department.

Hong Kong is a tax haven, which only taxes Hong Kong sourced income that falls within specified types of income – namely, salaries, property and profits. Capital gains, gifts, inheritances and social security are not taxed in Hong Kong.

Hong Kong does not tax capital gains and does not impose VAT or Goods & Services Tax (GST).

Taxpayers are taxed individually, though joint assessment is available for married people if beneficial. In addition, salaries, property and profits tax are usually subject to separate assessment, but can be assessed together if beneficial (called "personal assessment").

  • The Hong Kong Government provides more information on Tax Rates: Click here

Other Taxes

Estate (inheritance) tax was abolished in early 2006 and there are no wealth or gift taxes.

Investment Income (interest and dividend income)

Hong Kong does not generally tax interest or dividend income. However, rent from a Hong Kong rental property is subject to tax at 16 percent, with a statutory allowance for repairs and maintenance of 20 percent. Rent from properties outside Hong Kong is not subject to Hong Kong tax.

 

Disclaimer: Tax law is complex and every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is intended to be no more than a general overview of the position and certain details have been deliberately omitted. The contents of this page should not be taken as an authoritative statement of Hong Kong tax law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

Prepared by Rodney Ross, CPA (US), CA (Aust) Personal tax expert including Hong Kong and US tax return preparation, employment structuring (sign-on and termination issues) and incentive income matters. ITAX Limited Tel: 2815 9772 / e-mail / Website