🇭🇰 Hong Kong tax

• On: Salaries tax on Hong Kong employment income and income from services rendered in Hong Kong
• Who: Salaries Tax applies to income arising in or derived from Hong Kong

Hong Kong taxes under the territorial concept: salaries tax, property tax and profits tax apply to income arising in or derived from Hong Kong, whether the person is resident or not. Income arising outside Hong Kong is not charged under those taxes; salaries tax follows where the employment services are rendered. ^{1 2 3 4}

Taxed on

Salaries tax on Hong Kong employment income and income from services rendered in Hong Kong; profits tax on Hong Kong-source business profits.

Who it applies to

• Salaries Tax applies to income arising in or derived from Hong Kong; for services, source analysis depends on the employment and where duties are performed.
• Non-Hong Kong employment is assessed only for services rendered in Hong Kong; services rendered during visits totalling no more than 60 days in the year of assessment are exempt, where the work is controlled and supervised outside Hong Kong.
• The FSIE regime applies to specified foreign-source interest, dividends, IP income and equity disposal gains received by an MNE entity carrying on a business in Hong Kong, subject to exceptions.

Exclusions

• Hong Kong employment pay is taxable even when paid by a foreign company or outside Hong Kong.
• The FSIE regime applies to specified foreign-source passive income of MNE entities, not to individuals.

Days in the country

• More than 60 days in year of assessment (aggregated visits to Hong Kong) · Non-Hong Kong employment: visits to Hong Kong totalling more than 60 days in the year of assessment make the pay for those services assessable on a days-in-days-out basis; any part of a day counts.

Tax residence

Tax liability is based on Hong Kong source and chargeability; individuals may be chargeable whether Hong Kong resident or not. Source rules are fact-specific, especially for employees with mixed work locations.

Visas

No general visa-based tax holiday; visa category does not replace source and chargeability analysis.

Other taxes

No general VAT/GST. Mandatory provident fund contributions apply separately.

Checked against official sources on 10 Oct 2026Change log

• On: Net chargeable income = assessable salary income minus deductions and allowances
• Limit: HKD 50k/yr ≈ $6,370

Salaries tax is 2% to 17% on net chargeable income in five bands, capped at a standard rate of 15% on the first HK$5,000,000 of net income and 16% on the remainder. ^{5 2 6 7}

Taxed on

Net chargeable income = assessable salary income minus deductions and allowances; tax is the lower of the progressive result and the standard rate on net income without allowances.

Who it applies to

• Applies to all individuals with employment income arising in or derived from Hong Kong, irrespective of nationality or visa type.

Limits

• HKD 50,000 a year (≈ $6,370) · 2% on the first HK$50,000 of net chargeable income
• HKD 100,000 a year (≈ $12,700) · 6% on the next HK$50,000
• HKD 150,000 a year (≈ $19,100) · 10% on the next HK$50,000
• HKD 200,000 a year (≈ $25,500) · 14% on the next HK$50,000; 17% on the remainder
• HKD 5,000,000 a year (≈ $637,000) · Standard rate 15% on the first HK$5,000,000 of net income (2024/25 onwards), 16% on the remainder
• HKD 145,000 a year (≈ $18,500) · Basic allowance from the year of assessment 2026/27 (HK$132,000 for 2025/26), deducted before the progressive rates apply
• HKD 3,000 a year (≈ $380) · Ceiling of the one-off 100% reduction of final salaries tax for the year of assessment 2025/26 (per taxpayer; per couple when jointly assessed)

Visas

Tax follows source of employment, not visa category.

Other taxes

The 2026-27 Budget gave a one-off 100% reduction of the final salaries tax, profits tax and tax under personal assessment for the year of assessment 2025/26, capped at HK$3,000 per case (legislation gazetted 22 May 2026); the reduction does not apply to provisional tax. From 2026/27 the basic and married person's allowances rise from HK$132,000 to HK$145,000 and from HK$264,000 to HK$290,000. No VAT or capital gains tax is described in the IRD brief guide; profits tax applies to businesses on Hong Kong-source profits.

Checked against official sources on 11 Oct 2026Change log