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Tax in Hong Kong

Your personal tax guide for Hong Kong

The content in this tax guide is provided by EY.

Going to or leaving Hong Kong

Local tax information for Hong Kong

Local information Details

Tax authority

Inland Revenue Department (IRD)

Website

www.ird.gov.hk

Tax year

1 April to 31 March

Tax return due date

Within one month from the date of issue (2019/20 individual tax returns were issued on 1 June 2020, however profit tax returns, employers tax returns and property tax returns were issued at different dates)

Is joint filing possible

Yes (may elect to be assessed on a joint basis if more beneficial)

Are tax return extensions possible

Yes, depending on accounting dates for sole-proprietors of unincorporated businesses.

Local tax information for Hong Kong

Local information

Tax authority

Details

Inland Revenue Department (IRD)

Local information

Website

Details

www.ird.gov.hk

Local information

Tax year

Details

1 April to 31 March

Local information

Tax return due date

Details

Within one month from the date of issue (2019/20 individual tax returns were issued on 1 June 2020, however profit tax returns, employers tax returns and property tax returns were issued at different dates)

Local information

Is joint filing possible

Details

Yes (may elect to be assessed on a joint basis if more beneficial)

Local information

Are tax return extensions possible

Details

Yes, depending on accounting dates for sole-proprietors of unincorporated businesses.

2020/21 income tax rates for residents

2020/21 Taxable income bands for residents.

Taxable income band HKD National income tax rates

1 to 50,000

2%

50,001 to 100,000

6%

100,001 to 150,000

10%

150,001 to 200,000

14%

200,000 +

17%

2020/21 Taxable income bands for residents.

Taxable income band HKD

1 to 50,000

National income tax rates

2%

Taxable income band HKD

50,001 to 100,000

National income tax rates

6%

Taxable income band HKD

100,001 to 150,000

National income tax rates

10%

Taxable income band HKD

150,001 to 200,000

National income tax rates

14%

Taxable income band HKD

200,000 +

National income tax rates

17%

Three separate income taxes are levied in Hong Kong instead of a single unified income tax. The above rates are the applicable salaries tax rates for the period from 1 April 2020 through 31 March 2021.

  • profits tax is levied on non-corporate professional, trade or business income at a flat rate of 15%. An election can be made to be taxed under the “two-tiered” profits tax rates regime, where the rate of tax for the first HKD 2 million of profits is reduced by half to 7.5%. The remainder of the profits continue to be taxed at the normal rate of 15%. Each group of “connected entities” can only elect one entity in the group to benefit from the two-tiered tax regime during the year of assessment
  • property tax is levied at a flat rate of 15% on rental income, after a standard deduction of 20%
  • salaries tax is levied on net chargeable income (assessable income less personal deductions and allowances) at progressive rates ranging from 2% to 17%, or at a flat rate (maximum rate) of 15% on assessable income less personal deductions, whichever calculation produces the lower tax liability

Profits tax, salaries tax and property tax are assessed separately. If beneficial, a permanent or temporary Hong Kong resident individual may elect to be assessed under personal assessment on the aggregate of income or losses from all sources.

A basic allowance of HKD 132,000 or married person's allowance of HKD 264,000 (if spouse has no chargeable income or elect joint assessment) is available.

A one-off tax rebate is granted for the 2019-20 tax year. This rebate equals 100% of the final tax payable with respect to salaries tax and tax under personal assessment, subject to a ceiling of HKD 20,000 in each case.

Expat tax guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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