Taxation Principle
Territorial
CFC Rules
None
Foreign Exchange Control
None
National Currency
Hong Kong Dollar (HKD)
Corporate Tax Residency Criteria
No statutory definitions
Tax Authority
Inland Revenue Department
(IRD)
Inland Revenue Department IRD
Tax administration in Hong Kong is executed by the Inland Revenue Department (IRD), which oversees the collection of primary direct taxes, including profits tax, salaries tax, and property tax, alongside specialized stamp duties and registration fees.
The IRD also manages statutory business registration, regulatory tax compliance audits, and tax debt collection processes.
Hong Kong applies a two-tiered profits tax regime. This progressive framework is levied exclusively on profits sourced within or derived from Hong Kong.
| Taxpayer Type | First HKD 2,000,000 | Exceeding Balance |
| Corporate Entities | 8,25% | 16,5% |
| Unincorporated Businesses (Sole Proprietorships, Partnerships, Trusts) | 7,5% | 15% |
For related corporate groups, the preferential two-tiered rates apply to a single designated entity within the group, while all other group entities are taxed at the standard rates on their total profits.
Dividends distributed by domestic entities are fully exempt from corporate tax.
Dividends derived from foreign entities are classified as offshore-sourced income and remain non-taxable in Hong Kong.
However, for multinational enterprise (MNE) groups, foreign-sourced dividends may be deemed sourced within Hong Kong and subject to corporate tax under specific asset holding conditions (For detailed mechanics, see the “FSIE Regime” section)
Interest income deemed to be derived from or sourced within Hong Kong is subject to corporate tax.
A statutory tax exemption applies to interest income generated from deposits placed with authorized financial institutions within Hong Kong, except where the underlying deposit secures a loan facility for which interest expenses are claimed as a tax deduction.
Offshore-sourced interest income is non-taxable unless the corporate entity belongs to an MNE group subject to the updated Foreign-Sourced Income Exemption framework (For detailed mechanics, see the “FSIE Regime” section).
Intellectual property (IP) income is subject to Hong Kong profits tax if the underlying IP rights are granted to a domestic counterparty, or if the intellectual property is officially registered or commercially utilized within Hong Kong.
Royalties are fully tax-exempt if the IP asset is developed and managed entirely offshore and the utilization rights are granted to a foreign counterparty for operations outside Hong Kong.
Foreign-sourced offshore royalties may be deemed taxable under the refined FSIE framework for MNE groups (For detailed mechanics, see the “FSIE Regime“).
Hong Kong does not impose a distinct standalone capital gains tax on corporate entities.
Capital gains generated during the ordinary course of business (e.g., active trading in securities or disposal of assets as a primary commercial activity) are classified as ordinary trading income and subject to profits tax.
Capital gains arising from long-term capital investments unrelated to routine commercial trading (e.g., a one-off disposal of a long-term capital asset) are generally non-taxable.
Capital gains derived from the disposal of foreign assets are exempt from taxation unless the corporate entity operates as part of an MNE group (For detailed mechanics, see the “FSIE Regime” section).
Withholding tax is levied on a Hong Kong entity at the time of payment to foreign counterparties or non-resident partners.
| Income Type (Paid to Non-Resident) | Subject to Tax | Rate |
| Dividends | ✘ No | – |
| Interest | ✘ No | – |
| Royalties | ✔ Yes | from 2,475% to 16,5% |
| Commercial Performances by Artists and Athletes | ✔ Yes | 10% / 11% |
| Trade via Consignees | ✔ Yes | 0,5% of gross proceeds |
Withholding requirements apply to payments made to a non-resident IP owner for the use or right to use intellectual property within Hong Kong, or outside Hong Kong if the underlying expenses reduce the taxable profits base in Hong Kong.
Eligible intellectual property (IP) assets encompass:
Rates:
Where a comprehensive double taxation treaty (DTA) is active between Hong Kong and the recipient’s tax jurisdiction, the maximum withholding tax rate on royalties may be structurally reduced.
Fees paid to non-resident entertainers and athletes for live performances executed within Hong Kong are subject to withholding tax.
Rates
The tax must be withheld prior to the individual’s departure from Hong Kong. The paying entity is obligated to file Form IR623 and deduct the tax from the gross performance fees.
Withholding requirements apply when a non-resident commercial entity distributes goods in Hong Kong through a domestic consignee acting on behalf of the foreign principal. Because the non-resident lacks a permanent establishment (PE), the local compliance burden shifts entirely to the domestic consignee.
Rate: 0.5% of the gross sales revenue, levied independently of net profit margins
Hong Kong imposes zero Value Added Tax (VAT) and zero sales tax.
Hong Kong does not levy statutory social security or social insurance taxes.
The region operates a mandatory retirement scheme under the Mandatory Provident Fund (MPF) Ordinance. Employers must enroll all resident employees aged 18 to 65 into an authorized MPF scheme, driven by shared monthly contributions from both the employer and the employee.
Statutory thresholds establish minimum income levels for employee exemptions alongside maximum monthly contribution caps for both parties.
| Monthly Employee Income | Employer Contribution | Employee Contribution |
| Below HKD 7,100 | 5% of relevant income | HKD 0 |
| HKD 7,100 – HKD 30,000 | 5% of relevant income | 5% of relevant income |
| Above HKD 30,000 | HKD 1,500 (statutory cap) | HKD 1,500 (statutory cap) |
Stamp duty is levied on the lease, sale, and transfer of real estate, as well as transactions involving shares of Hong Kong companies. If the transactional value falls below fair market value, the duty is assessed based on the open market valuation.
Rates:
Hong Kong operates targeted preferential regimes designed to foster strategic industry sectors and high-value commercial operations
The standard fiscal year in Hong Kong runs from April 1 to March 31 of the following calendar year.
If a company’s financial year-end does not coincide with the standard fiscal year, its profits are assessed based on the basis period ending within that specific fiscal year.
Specialized statutory apportionment rules apply to newly incorporated entities, liquidating companies, or reporting periods spanning shorter or longer than 12 months.
The Inland Revenue Department (IRD) issues Profits Tax Returns (PTR) on the first working day of April.
The statutory filing deadline is 1 month from the date of issuance.
Entities represented by authorized tax representatives qualify for automatic filing extensions:
For newly incorporated entities the first PTR is issued 18 months post-incorporation, carrying a statutory filing window of 4 months.
Upon submission and regulatory review, the IRD determines the final tax liability and issues an official Notice of Assessment or a formal Statement of Loss.
The Notice of Assessment specifies the final tax due and the designated settlement deadline, while the Statement of Loss confirms the exact tax loss figure approved to be carried forward against future taxable profits.
Corporate profits tax is structured for settlement across a two-stage payment framework.
The initial transaction comprises 75% of the provisional tax assessed for the current fiscal period plus 100% of the finalized tax balance calculated from the preceding financial year. The secondary installment captures the remaining 25% balance of the tax liability for the current fiscal period.
Tax payment schedules, traditionally mapped between November of the assessment year and April of the subsequent calendar year, are strictly designated by the Commissioner of Inland Revenue (CIR) and detailed inside the official statutory assessment notices.
Profits Tax Returns
Corporate and partnership trade profits are processed utilizing specialized profits tax return variants.
The Inland Revenue Department mandates 3 foundational return formats:
Form BIR51 – the primary profits tax return allocated to corporate entities and incorporated businesses.
Form BIR52 – the standard profits tax return designated for partnerships and unincorporated business structures.
Form BIR54 – the specialized profits tax return for non-resident entities, executed by the domestic paying entity when distributing taxable source income to a non-resident counterparty.
Sole proprietorship operations consolidate their business tax reporting inside the individual tax framework utilizing Form BIR60.
Supplementary tax schedules must be compiled electronically in structured XML format and submitted concurrently as integral attachments to Form BIR51:
Form S1 – Selection of Two-Tiered Profits Tax Rates for Connected Entities.
Deployed by a designated member of an affiliated corporate group to secure the lower-tier tax threshold.
Form S2 – Transfer Pricing Documentation.
Executed by entities engaged in transactions with connected persons to verify that intra-group cross-border transactions mirror arm’s length principles.
Form S19 – Foreign-Sourced Income Exemption (FSIE) Reporting.
Mandatory for corporate entities receiving offshore passive income (dividends, interest, or royalties) and remitting funds into Hong Kong, verifying statutory compliance for the tax-exempt (0%) framework.
Form S22 – Intellectual Property Tax Concessions.
Completed by corporate bodies generating revenue from intellectual property assets (software, patents, or trademarks) to secure reduced tax scaling under the patent box regime.
Employer’s Returns
Corporate entities acting as employers must submit annual statutory declarations detailing total remuneration paid to their staff architecture:
Form BIR56A – is the employer’s consolidated annual summary return.
Form IR56B – is the individual employee remuneration statement compiled for each member of the workforce.
Form IR56E – notification of new employee recruitment, required within 3 months from the commencement of employment.
Form IR56F / IR56G – statutory notifications triggered upon the termination of an employee or prior to their permanent departure from Hong Kong.
Form IR56M – the annual return detailing fees paid to domestic corporate contractors, freelance operators, and external consultants outside the standard payroll framework.
Property Tax Returns
Property declarations are mandatory for corporate setups acquiring passive rental income from real estate structures positioned within the Hong Kong territory.
Form BIR57 – property tax returns for real estate held under joint ownership structures with corporate or individual co-owners.
Form BIR58 – the dedicated return format for reporting corporate property rental revenues derived from real estate assets owned by a legal entity.
The principal annual tax return required to be filed by all limited companies incorporated in Hong Kong and foreign companies carrying on business in Hong Kong. The return sets out the company’s assessable profits, together with the expenses and deductions claimed for tax purposes.
The return must be filed annually upon receipt of a Profits Tax Return issued by the Inland Revenue Department (IRD), generally on the first working day of April.
An electronic supplementary form accompanying BIR51, used by connected entities to elect the application of the two-tiered profits tax rates regime.
Allows a company to claim the reduced profits tax rate of 8.25% on the first HK$2 million of its assessable profits. Only one entity within a group of connected entities may benefit from the reduced rate.
The reduced tax rate may be applied to only one entity within a group of connected entities.
An annual covering form submitted by employers to the Inland Revenue Department (IRD) to report employees’ remuneration and pension payments.
Must be filed within one month of issuance, together with a separate Form IR56B for each reportable employee.
An individual employee income statement prepared separately for each employee and submitted together with BIR56A. Reports remuneration and benefits received during the relevant tax year, including salaries, bonuses, housing benefits, share options and other taxable benefits.
The Inland Revenue Department (IRD) uses the reported information to assess each employee’s individual Salaries Tax liability.
Multinational enterprise (MNE) groups executing commercial operations within Hong Kong are subject to the refined Foreign-Sourced Income Exemption (FSIE) framework.
A corporate structure comprising at least one enterprise or permanent establishment (PE) positioned outside the jurisdiction of its ultimate parent entity, irrespective of asset volume or gross revenue thresholds.
Under this compliance regime, offshore passive income acquired by MNE groups is no longer automatically exempt from corporate tax if it is received or deemed received in Hong Kong (e.g., remitted to a local bank account, deployed to settle domestic corporate liabilities, or used to clear local operational costs).
The FSIE framework regulates 4 categories of foreign-sourced passive income: dividends, interest, royalties, capital gains.
If an MNE group receives foreign passive income falling within the scope of the FSIE framework and fails to substantiate its statutory right to an exemption, the total amount of such remitted income is subject to Hong Kong profits tax at the standard corporate rate of 16.5%.
Tax Exemption Compliance Standards
Transfer pricing legislation in Hong Kong is aligned with OECD guidelines and mandates that commercial and financial transactions between connected entities adhere to the arm’s length principle.
If the Inland Revenue Department (IRD) determines that pricing models or consideration metrics between associated parties deviate from open market benchmarks and structurally reduce the local tax base, the authority is legally empowered to adjust corporate profit or loss allocations.
Transfer Pricing Documentation Standards
Hong Kong implements the standardized OECD three-tiered documentation framework, requiring entities to formally substantiate that intra-group cross-border transactions mirror arm’s length conditions:
All required statutory documentation must be compiled within 9 months from the corporate financial year-end, retained for a minimum storage cycle of 7 years, and produced immediately upon regulatory audit requests from the tax authority.
Corporate entities qualify for full exemptions from compiling the Master File and the Local File if they meet the structural parameters under either of the following asset and volume thresholds:
Country-by-Country reporting protocols target multinational groups generating a consolidated group turnover exceeding EUR 750,000,000 (approximately HKD 6.8 billion) in the immediately preceding financial period.
The primary statutory filing obligation rests with the Ultimate Parent Entity (UPE) of the multinational structure.
A domestic Hong Kong subsidiary operating within the scope of such an MNE group must submit an official CbC Notification to the IRD within 3 months post-financial year-end, explicitly disclosing the filing identity and tax jurisdiction of the UPE or the Surrogate Parent Entity (SPE).
The finalized global CbC Report must be electronically submitted within 12 months from the conclusion of the corresponding financial period.
Hong Kong does not enforce Controlled Foreign Corporation (CFC) regulations.
Hong Kong operates with no thin capitalization rules or fixed debt-to-equity ratio limitations.
However, corporate interest expense deductions are governed by intricate statutory anti-avoidance provisions designed to disallow interest claims on financing structures deployed primarily to erode the Hong Kong profits tax base.
Hong Kong maintains an expansive network of Comprehensive Double Taxation Agreements (DTAs) to mitigate double taxation risks and optimize cross-border trade structures. The jurisdiction has executed tax treaties with 57 countries to provide fiscal clarity and reduced withholding tax frameworks for international corporate operations.
Furthermore, the region has implemented Tax Information Exchange Agreements (TIEAs) mirroring OECD transparency models and is an active signatory to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
Following the enforcement of the updated Foreign-Sourced Income Exemption (FSIE) framework in Hong Kong, a corporate client requested an immediate compliance audit of their current international holding structure and dividend routing mechanisms.
The parent entity, a Hong Kong company executing active local operations through a registered domestic establishment, regularly received foreign-sourced dividends into its onshore Hong Kong corporate bank account from an operating subsidiary incorporated and trading entirely outside Hong Kong.
Evaluate potential profits tax exposures and structural compliance risks triggered by the FSIE regime regarding the remittance of foreign-sourced dividends to the Hong Kong entity.
The comprehensive compliance audit confirmed a minimal tax exposure for the client, as the corporate asset architecture successfully met the statutory participation exemption benchmarks. The Hong Kong parent entity maintained a continuous equity holding exceeding 5% in the foreign investing subsidiary for a period surpassing 12 months. Furthermore, the underlying foreign subsidiary executed active commercial trade within its home jurisdiction, fulfilling the subject-to-tax condition by settling local corporate tax liabilities on its operational revenue.
Proactively managing operational adjustments under the FSIE framework, a corporate client sought advanced fiscal planning for an upcoming international supply chain restructure. The client intended to procure foreign raw materials to support the manufacturing and commercial trading activities of their Hong Kong entity. The financial model assumed that raw material invoices would be settled from an offshore corporate bank account positioned outside Hong Kong, which had previously accumulated interest income derived entirely from foreign financial sources.
Determine whether utilizing offshore accumulated interest to settle trade payables linked to domestic commercial operations would trigger a corporate profits tax liability in Hong Kong under FSIE receipt-based rules.
The strategic assessment concluded that deploying offshore interest income to liquidate trade liabilities arising from onshore business activities constitutes a “deemed receipt” of funds within Hong Kong under statutory FSIE definitions. To eliminate the risk of retroactive tax assessments, the client was advised to establish a robust economic substance footprint within Hong Kong tailored specifically to their operational scale. Implementation roadmaps were delivered to ensure the corporate headquarters successfully integrated qualified local personnel and adequate domestic operational expenditures.
An international corporate client planned to acquire commercial real estate positioned within a foreign jurisdiction (Jurisdiction F). The capital allocation for the property transaction was structured to utilize offshore dividend distributions accumulated and held directly within a corporate bank account maintained in Jurisdiction F by a Hong Kong parent company (the HK entity).
Evaluate potential profits tax liabilities and implement risk-mitigation strategies for foreign-sourced dividend distributions under the statutory receipt-based rules of the FSIE framework.
The review identified a significant tax exposure under the FSIE regime. Because the targeted offshore real estate asset was intended to support the ongoing trade, professional, and commercial operations of the corporate group within the Hong Kong territory, the transaction constituted a deemed remittance. The client could not immediately satisfy the statutory economic substance requirement or the participation exemption parameters, triggering a profits tax liability. Structural re-engineering of the acquisition path was recommended to preserve the tax-exempt status of the offshore funds.
No. Hong Kong operates under a territorial tax principle, levying profits tax exclusively on revenues derived from or sourced within the jurisdiction.
For corporate entities executing international trade or operating entirely outside the region, this framework provides a significant fiscal advantage: foreign-sourced income is non-taxable in Hong Kong, irrespective of the tax residency status of the legal entity or its ultimate beneficial owners.
Tax liability is assessed based on the physical location of the revenue-generating activities rather than the place of corporate incorporation, rendering statutory tax residency status secondary. Profits are taxable if the operational source is positioned within the Hong Kong territory.
To determine the exact source of profits, the Inland Revenue Department (IRD) evaluates the following operational components:
These statutory parameters are modified exclusively by the provisions of active Comprehensive Double Taxation Agreements (DTAs).
Yes. The statutory obligation to submit a tax return remains mandatory irrespective of operational activity or profitability. If a company generated no taxable income, a nil return must be filed. Even if an entity is incorporated but has not opened a corporate bank account in Hong Kong, it complies with mandatory annual reporting to the Inland Revenue Department (IRD). Profits derived entirely from offshore sources are eligible for a formal tax exemption claim upon submission.
To approve a profits tax exemption under the territoriality principle (offshore tax status), the Inland Revenue Department (IRD) conducts a rigorous downstream audit. The authority systematically requests the following corporate documentation and transactional evidence:
Commercial Records
Operational Activity Verification
Infrastructure and Governance Data:
For the application of the two-tiered profits tax regime the regulatory framework utilizes the term “connected entity.” Entities are connected if one controls the other, or if both operate under the common control of the same person or corporate body. Within a connected group, the lower-tier tax threshold is strictly restricted to a single designated company.
For transfer pricing compliance, counterparties are classified as “associates” if one party directly or indirectly participates in the management, control, or capital equity of the other, or if the same person or group of persons participates in the management, control, or capital equity of both entities. This statutory classification encompasses:
Hong Kong does not levy a unified global personal income tax. The fiscal framework utilizes schedular taxes assessed independently based on the source and nature of the generated income: salaries tax, profits tax, and property tax. Each tax is calculated separately utilizing its own dedicated tax base and deductions.
| Salaries Tax | |
|
Taxable Base
|
Tax Rate
The lower amount generated between the progressive and standard calculation methods is payable. |
| Profits Tax | |
|
Taxable Base
|
Tax Rate 7.5% on the first HKD 2,000,000, and 15% on the remaining balance exceeding HKD 2,000,000. |
| Property Tax | |
|
Taxable Base
|
Tax Rate 15% on net assessable value after applying a standard statutory deduction of 20% |
The Hong Kong fiscal framework does not impose a distinct standalone royalty tax. Revenues generated from intellectual property assets (including copyrights, patents, proprietary software licenses, and trademarks) are classified as ordinary commercial trading income. The compliance routing and final tax rates depend on the tax residency status of the recipient.
Tax Rate for Individuals: 7.5% on the first HKD 2,000,000, and 15% on the remaining balance exceeding HKD 2,000,000.
Rates are based on the counterparty status:
Withholding tax percentages for non-resident recipients are eligible for reduction under active DTAs between Hong Kong and the recipient’s tax jurisdiction.
Hong Kong does not levy statutory social security or social insurance taxes.
The region operates a mandatory retirement scheme under the Mandatory Provident Fund (MPF) Ordinance. Employers must enroll all resident employees aged 18 to 65 into an authorized MPF scheme, driven by shared monthly contributions from both the employer and the employee.
Statutory thresholds establish minimum income levels for employee exemptions alongside maximum monthly contribution caps for both parties.
| Monthly Employee Income | Employer Contribution | Employee Contribution |
| Below HKD 7,100 | 5% of relevant income | HKD 0 |
| HKD 7,100 – HKD 30,000 | 5% of relevant income | 5% of relevant income |
| Above HKD 30,000 | HKD 1,500 (statutory cap) | HKD 1,500 (statutory cap) |
Stamp duty is levied on the lease, sale, and transfer of real estate, as well as transactions involving shares of Hong Kong companies. If the transactional value falls below fair market value, the duty is assessed based on the open market valuation.
Rates:
| Real Estate Leases | Real Estate Sales | Share Transfers |
| 0,25% (terms under 1 year), 0,5% (1–3 years), 1% (exceeding 3 years) of the total or average annual rent |
Graded from HKD 100 up to 6.5% of the property value | 0,2% of the transactional value or net asset value |
Hong Kong does not impose separate taxes on dividends, interest, capital gains, or gifts and inheritances.
|
Dividend Tax Zero Dividends derived from both domestic and foreign entities are fully tax-exempt and require no statutory declaration. |
Interest Tax Zero Interest income generated from bank accounts, deposits, or bonds within Hong Kong or internationally is fully non-taxable. |
|
Capital Gains Tax Zero Revenues derived from the disposal of personal shares, crypto-assets, real estate, or business equity are fully exempt from taxation. |
Gift and Inheritance Tax Zero The jurisdiction levies no statutory inheritance tax, estate duty, or gift tax. |
Statutory fixed amounts deducted annually from total gross income prior to tax calculations, granted based on the taxpayer’s social and marital status.
* Data applies to the 2025/26 financial year:
Personal allowances are granted in full, irrespective of the employee’s physical presence duration within Hong Kong during the fiscal year. However, these deductions apply exclusively to calculations under the progressive tax rate scale. Entities or individuals taxed at the standard rate scale (15% / 16%) are not eligible to claim these allowances.
Taxpayers can optimize their net chargeable income base by claiming itemized deductions for verified personal outgoings.
* Data applies to the 2025/26 financial year:
The Hong Kong government systematically implements a one-off tax reduction to mitigate the overall fiscal burden on individuals and domestic businesses.
For the 2025/26 assessment period, a 100% statutory tax reduction applies to the finalized profits tax, salaries tax, and personal assessment liability, capped at a maximum threshold of HKD 3,000 per case.
An alternative statutory consolidation framework designed for individual taxpayers generating multiple income streams across distinct tax schedules (including salaries, sole proprietorship profits, and property rental revenues).
This tracking mechanism allows individuals to aggregate their diverse source revenues into a single unified tax return. This optimization enables the application of personal allowances, itemized outgoings, and business loss carry-forwards that would otherwise be restricted under separate schedular assessments.
Hong Kong tax residents aged 18 or older can elect for Personal Assessment if the structural calculation minimizes their net tax liability. The election is executed by completing Section 7 of the individual tax return (Form BIR60) or by submitting a formal application via Form IR76C within statutory filing timelines.
Hong Kong does not operate a standalone taxpayer registration procedure. An individual or sole proprietor is automatically classified as a taxpayer upon generating taxable source income or registering a business and commencing revenue-generating operations.
If a salaries tax, profits tax, or property tax liability arises for the first time and the taxpayer does not receive an official tax return from the authority, they must formally notify the IRD by July 31 of the subsequent calendar year (strictly within 4 months post-fiscal year-end).
The written notification must disclose:
the taxpayer’s full name, Hong Kong Identity Card (HKID) number, residential address, daytime contact information, and the following sector-specific criteria:
Individuals must submit a statutory declaration if they generate any of the following three categories of income from sources within Hong Kong: salaries from employment (exceeding the baseline basic allowance), commercial profits derived from a sole proprietorship, or rental revenues from leasing domestic real estate assets.
In addition to the taxpayer, domestic employers carry reporting obligations. Legislation mandates that employers submit separate annual information returns (Form IR56B) detailing the remuneration structure for each individual employee.
When compiling the annual individual tax return (Form BIR60), taxpayers can formally elect one of three calculation and optimization methodologies
An individual tax return covering income from employment, business profits and rental income from personally owned properties. Allows taxpayers to claim applicable deductions and allowances.
Date of Issue: Generally, the first working day of May.
Filing Deadline: Within one month of issuance for paper returns or two months for electronic returns. For sole proprietors, the filing period is extended to three months for paper returns and four months for electronic returns.
Tax Payment Deadline: Specified in the Notice of Assessment issued by the Inland Revenue Department (IRD), generally with instalments due in January and April.
Sample BIR60 Tax Return
Issued to joint property owners, companies and other groups of persons. Rental income from solely owned properties is reported in the individual owner’s Tax Return – Individuals (BIR60).
Date of Issue: Generally, the first working day of April.
Filing Deadline: Within one month of issuance, with an additional two-week extension for electronic filing.
Tax Payment Deadline: Specified in the Notice of Assessment issued by the Inland Revenue Department (IRD), generally with instalments due in November and April.
Sample BIR57 Tax Return
Salaries tax is levied on all income derived from employment sources within Hong Kong, including
Where an employer provides housing rent-free or below market rates, a statutory “rental value” is deemed taxable income. This value is calculated as a flat 10% of the employee’s net income derived from that specific employer. If the employee partially contributes to the rent, the taxable benefit is restricted to the net differential.
Yes. Hong Kong operates under a strict territorial framework. For salaries tax calculations, the location where the employment duties are physically executed dictates the tax exposure:
The Inland Revenue Department (IRD) determines the source of employment by evaluating 3 benchmarks: the jurisdiction where the employment contract was negotiated and executed, the residency status of the corporate employer, and the place where the remuneration is settled.
Rental revenues derived from real estate are subject to property tax unless the leasing activity is classified as an active business operation.
Owners of Hong Kong real estate generating rental income must maintain regulatory compliance:
За оценочный год 2024/25 арендная плата составляла 10 000 HKD в месяц, и арендатор платил налоги.
| Оценочная стоимость за 2024/25 (окончательная) и 2025/26 (предварительная) | |
| Оценочная стоимость (аренда за 12 месяцев) | 120 000 HKD |
| За вычетом: 20% компенсация на ремонт и расходы | 24 000 HKD |
| Чистая оценочная стоимость (ЧОС) | 96 000 HKD |
| Налог на имущество за 2024/25 (15%) | 14 400 HKD |
| Добавить: Предварительный налог на имущество за 2025/26 (налог по стандартной ставке 15% от ЧОС за 2024/25) | 14 400 HKD |
| Общая сумма налога к уплате: | 28 800 HKD |
