Deductions and Allowances on Income Tax in Hong Kong

Find out about the exemptions and reduced rates that apply to income taxation in Hong Kong...

Deductions

Given Hong Kong's historic low tax rates and simple structure, there are few deductions allowed. The main ones include:

  • employee contributions to a recognised pension scheme
  • taxpayer's education expenses
  • Hong Kong charitable donations
  • home loan interest

Allowances

Hong Kong has significant personal allowances including:

  • Basic allowance (for the taxpayer)
  • Married person's allowance
  • Single parent allowance
  • Child allowances (these depend on the age of the child):
    • Year of birth: first to ninth child (per child)
    • All other years: first to ninth child (per child)
  • Dependent parent/grandparent allowance
    • residing with taxpayer
    • not residing with taxpayer
  • Dependent brother/sister
  • Disabled dependant allowance
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