Hong Kong Individual Tax
Hong Kong salaries tax is charged on every individual in respect of his/her income arising in or derived from any office, employment or any pension in Hong Kong. All income from a “Hong Kong sourced employment” is liable to tax irrespective of the locations for rendering the services, subject only to certain statutory exemptions.
On the other hand, income from a “non-Hong Kong sourced employment” can be apportioned on day-in-day-out basis so that only a portion of the income proportionate to the time spent by the employee in Hong Kong is chargeable to salaries tax.
Tax Rate
The amount of tax payable is calculated at the lower of:
- The standard rate (i.e. 15%) on chargeable income after deduction of charitable donations; or
- The applicable progressive rates on net chargeable income after deduction of charitable donations and personal allowance.
For the YOA 2021/22, the progressive rates are as follow:
| Net Chargeable Income (HKD) | Rate | Tax (HKD) | |
|---|---|---|---|
| On the First | 50,000 | 2% | 1,000 |
| On the Next | 50,000 100,000 | 6% | 3,000 4,000 |
| On the Next | 50,000 150,000 | 10% | 5,000 9,000 |
| On the Next | 50,000 200,000 | 14% | 7,000 16,000 |
| Remainder | 17% |
Concessionary Deductions
Individual taxpayers are eligible to claim deduction on below subject to certain conditions.
- Charitable Donations
- Elderly Residential Care Expenses
- Home Loan Interest
- Contribution to Mandatory Provident Fund (“MPF”) Scheme or Recognized Retirement Scheme
- Voluntary contributions to an MPF scheme and qualifying annuity premiums
- Health Insurance Premiums
- Domestic Rent Deduction (Effective from the YOA 2022/23)
Our Services include
- Individual tax compliance services including filing of tax return and computation
- Application for tax exemption
- Reply to the queries from the IRD
- Holdover application
- Objection to assessment
- General advice of individual tax planning
For more information of our Hong Kong tax services, please contact our tax team by e-mail to tax@atrixbiz.com.
Corporate Tax
Hong Kong adopts territorial tax system. Profits tax shall be charged on every person carrying on trade, profession or business in Hong Kong in respect of the profits arising in or derived from Hong Kong from such trade, profession or business regardless of the nationality, domicile or residence of a person.
Individual Tax
Hong Kong salaries tax is charged on every individual in respect of his/her income arising in or derived from any office, employment or any pension in Hong Kong. All income from a “Hong Kong sourced employment” is liable to tax irrespective of the locations for rendering the services, subject only to certain statutory exemptions.
Tax Investigation and Filed Audit Support
Hong Kong upholds simple tax system and its tax rate is one of the lowest in the world which requires a high degree of compliance of taxpayers. In order to protect government revenue, the IRD will review the submitted tax returns periodically by way of field audit and investigation.
Tax Policies in Hong Kong
Double Taxation Relief / Withholding Taxs / Advance Ruling in Hong Kong
/ Common Reporting Standard ("CRS") and Automatic Exchange of Financial Account Information ("AEOI")
/ Common Reporting Standard ("CRS") and Automatic Exchange of Financial Account Information ("AEOI")