OpenAccountants/Hong Kong/Hong Kong Corporate Income Tax

Hong Kong Corporate Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: corporate income tax for Hong Kong (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Hong Kong, 2025

Every figure is drawn from this Tax Guide and cited to its source.

Corporation rate — first HKD 2,000,000 of assessable profits

8.25%Inland Revenue Ordinance (Cap. 112), Schedule 8View source ↗

Corporation rate — profits above HKD 2,000,000

16.5%Inland Revenue Ordinance (Cap. 112), Schedule 8View source ↗

Unincorporated business rate — first HKD 2,000,000

7.5%Inland Revenue Ordinance (Cap. 112), Schedule 8View source ↗

Unincorporated business rate — above HKD 2,000,000

15%Inland Revenue Ordinance (Cap. 112), Schedule 8View source ↗

Two-tiered rate — group restriction

Only ONE entity within a group of connected entities may elect the lower-tier (8.25%/7.5%) rate in a year of assessmentInland Revenue Ordinance (Cap. 112), Schedule 8AAView source ↗

Tax base

Profits arising in or derived from a trade, profession or business carried on in Hong Kong (excluding profits from the sale of capital assets); offshore-source profits generally not chargeableInland Revenue Ordinance (Cap. 112), section 14View source ↗

Capital gains

Not taxable — Hong Kong has no capital gains taxInland Revenue Ordinance (Cap. 112)View source ↗

Withholding tax on dividends

0%Inland Revenue Ordinance (Cap. 112)View source ↗

Withholding tax on interest

0%Inland Revenue Ordinance (Cap. 112)View source ↗

Withholding tax on royalties to a non-resident (non-associate)

Effective 4.95% (16.5% on deemed assessable profits of 30% of gross); 2.475% on first HKD 6,666,667 where two-tiered rate appliesInland Revenue Ordinance (Cap. 112), section 15(1)(a)/(b) and 21AView source ↗

Withholding tax on royalties to an associated non-resident (IP previously HK-owned)

Effective up to 16.5% (deemed assessable profits = 100% of royalties); 8.25% on first HKD 2,000,000 where two-tiered appliesInland Revenue Ordinance (Cap. 112), section 21AView source ↗

Profits tax return filing

Issued on first working day of April; due within 1 month, with block extensions by accounting-date code (e.g. 'D' code 31 Dec year-end ~mid-November; 'M' code 31 Mar year-end ~mid-August) ((approx — confirm))Inland Revenue Ordinance (Cap. 112), section 51View source ↗

Provisional profits tax

Provisional profits tax for the following year is charged with the final assessment and is generally payable with the final tax in instalments ((approx — confirm))Inland Revenue Ordinance (Cap. 112), Part X

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

Profits tax (corporate)

Hong Kong levies profits tax on income arising in or derived from a trade, profession or business carried on in Hong Kong (territorial basis). A two-tiered rate applies, and there is no tax on capital gains or on dividends/interest paid to non-residents.

Corporation rate — first HKD 2,000,000 of assessable profits — 8.25% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)
Corporation rate — profits above HKD 2,000,000 — 16.5% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)
Unincorporated business rate — first HKD 2,000,000 — 7.5% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)
Unincorporated business rate — above HKD 2,000,000 — 15% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)
Two-tiered rate — group restriction — Only ONE entity within a group of connected entities may elect the lower-tier (8.25%/7.5%) rate in a year of assessment (Inland Revenue Ordinance (Cap. 112), Schedule 8AA)
Tax base — Profits arising in or derived from a trade, profession or business carried on in Hong Kong (excluding profits from the sale of capital assets); offshore-source profits generally not chargeable (Inland Revenue Ordinance (Cap. 112), section 14)
Capital gains — Not taxable — Hong Kong has no capital gains tax (Inland Revenue Ordinance (Cap. 112))
Withholding tax on dividends — 0% % (no withholding tax on dividends) (Inland Revenue Ordinance (Cap. 112))
Withholding tax on interest — 0% % (no withholding tax on interest) (Inland Revenue Ordinance (Cap. 112))
Withholding tax on royalties to a non-resident (non-associate) — Effective 4.95% (16.5% on deemed assessable profits of 30% of gross); 2.475% on first HKD 6,666,667 where two-tiered rate applies % (Inland Revenue Ordinance (Cap. 112), section 15(1)(a)/(b) and 21A)
Withholding tax on royalties to an associated non-resident (IP previously HK-owned) — Effective up to 16.5% (deemed assessable profits = 100% of royalties); 8.25% on first HKD 2,000,000 where two-tiered applies % (Inland Revenue Ordinance (Cap. 112), section 21A)
Profits tax return filing — Issued on first working day of April; due within 1 month, with block extensions by accounting-date code (e.g. 'D' code 31 Dec year-end ~mid-November; 'M' code 31 Mar year-end ~mid-August) ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), section 51)
Provisional profits tax — Provisional profits tax for the following year is charged with the final assessment and is generally payable with the final tax in instalments ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), Part X)

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Profits tax (corporate)

Corporation rate — first HKD 2,000,000 of assessable profits — 8.25% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)

Corporation rate — profits above HKD 2,000,000 — 16.5% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)

Unincorporated business rate — first HKD 2,000,000 — 7.5% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)

Unincorporated business rate — above HKD 2,000,000 — 15% % (Inland Revenue Ordinance (Cap. 112), Schedule 8)

Two-tiered rate — group restriction — Only ONE entity within a group of connected entities may elect the lower-tier (8.25%/7.5%) rate in a year of assessment (Inland Revenue Ordinance (Cap. 112), Schedule 8AA)

Tax base — Profits arising in or derived from a trade, profession or business carried on in Hong Kong (excluding profits from the sale of capital assets); offshore-source profits generally not chargeable (Inland Revenue Ordinance (Cap. 112), section 14)

Capital gains — Not taxable — Hong Kong has no capital gains tax (Inland Revenue Ordinance (Cap. 112))

Withholding tax on dividends — 0% % (no withholding tax on dividends) (Inland Revenue Ordinance (Cap. 112))

Withholding tax on interest — 0% % (no withholding tax on interest) (Inland Revenue Ordinance (Cap. 112))

Withholding tax on royalties to a non-resident (non-associate) — Effective 4.95% (16.5% on deemed assessable profits of 30% of gross); 2.475% on first HKD 6,666,667 where two-tiered rate applies % (Inland Revenue Ordinance (Cap. 112), section 15(1)(a)/(b) and 21A)

Withholding tax on royalties to an associated non-resident (IP previously HK-owned) — Effective up to 16.5% (deemed assessable profits = 100% of royalties); 8.25% on first HKD 2,000,000 where two-tiered applies % (Inland Revenue Ordinance (Cap. 112), section 21A)

Profits tax return filing — Issued on first working day of April; due within 1 month, with block extensions by accounting-date code (e.g. 'D' code 31 Dec year-end ~mid-November; 'M' code 31 Mar year-end ~mid-August) ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), section 51)

Provisional profits tax — Provisional profits tax for the following year is charged with the final assessment and is generally payable with the final tax in instalments ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), Part X)