Our Tax System
Hong Kong offers an extremely tax-friendly system, making it one of the most attractive places in the world for
businesses.
Tax-free benefits
Two-tier Company Profits Tax System
Personal Income Tax
Tax-free benefits
- No sales tax or VAT
- No withholding tax
- No capital gains tax
- No tax on dividends or interest from savings
- No estate tax
Two-tier Company Profits Tax System
- 8.25 per cent on first HK42 million (approximately US4255,000)
- 16.5 per cent on remaining profits above HK$2 million
- "Super deductions" of up to 300 per cent in specific areas such as Research & Development, Corporate Treasury Centre, aircraft leasing
Personal Income Tax
- Capped at 15 per cent maximum
- Only income sourced in Hong Kong is taxed
- Network of comprehensive double taxation agreements (CDTAs) for expatriate residents