How to compute hk-salaries-tax for Hong Kong, tax year 2024: rates, thresholds, and step-by-step rules with primary-source citations.
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Year of assessment period
1 April – 31 MarchInland Revenue Ordinance (Cap. 112)
BIR60 filing deadline (paper)
1 month from date of issue (usually early June)Inland Revenue Ordinance (Cap. 112)
BIR60 filing deadline (eTAX)
1 additional month beyond paper deadline (usually early July)Inland Revenue Ordinance (Cap. 112)
Progressive rate – first HK$50,000 of Net Chargeable Income
2%IRO Schedule 2
Progressive rate – next HK$50,000 (HK$50,001–100,000)
6%IRO Schedule 2
Progressive rate – next HK$50,000 (HK$100,001–150,000)
10%IRO Schedule 2
Progressive rate – next HK$50,000 (HK$150,001–200,000)
14%IRO Schedule 2
Progressive rate – remainder above HK$200,000
17%IRO Schedule 2
Standard rate – first HK$5,000,000 of Net Income
15%Inland Revenue (Amendment) (Taxation Proposals Relating to 2024-25 Budget) Ordinance; IRO Sec. 12B / Schedule 2
Standard rate – Net Income exceeding HK$5,000,000
16%Inland Revenue (Amendment) (Taxation Proposals Relating to 2024-25 Budget) Ordinance; IRO Sec. 12B / Schedule 2
Standard rate tier-1 threshold
HK$5,000,000Inland Revenue (Amendment) (Taxation Proposals Relating to 2024-25 Budget) Ordinance; IRO Sec. 12B / Schedule 2
Progressive rate band width
HK$50,000 per band (4 bands)IRO Schedule 2
Basic allowance
HK$132,000IRO Sec. 28--33
Married person's allowance
HK$264,000IRO Sec. 28--33
Child allowance (each child)
HK$130,000IRO Sec. 28--33
Child allowance – additional in year of birth
HK$130,000IRO Sec. 28--33
Dependent parent/grandparent allowance (aged 60+)
HK$50,000IRO Sec. 28--33
Dependent parent/grandparent allowance (aged 60+, living together)
HK$100,000IRO Sec. 28--33
Dependent parent/grandparent allowance (aged 55–59)
HK$25,000IRO Sec. 28--33
Dependent parent/grandparent allowance (aged 55–59, living together)
HK$50,000IRO Sec. 28--33
Dependent brother/sister allowance
HK$37,500IRO Sec. 28--33
Single parent allowance
HK$132,000IRO Sec. 28--33
Disabled dependant allowance
HK$75,000IRO Sec. 28--33
Personal disability allowance
HK$75,000IRO Sec. 28--33
Self-education expenses deduction cap
HK$100,000IRO Sec. 12
MPF mandatory contributions (employee) deduction cap
HK$18,000IRO Sec. 12
Approved charitable donations deduction cap
35% of assessable incomeIRO Sec. 12
Elderly residential care expenses deduction cap
HK$100,000IRO Sec. 12
Home loan interest deduction cap
HK$100,000 (maximum 20 years of assessment)IRO Sec. 26I
Qualifying premiums (VHIS) deduction cap per insured person
HK$8,000IRO Sec. 12
Qualifying annuity premiums (QDAP) deduction cap
HK$60,000IRO Sec. 12AA
MPF tax deductible voluntary contributions (TVC) deduction cap
HK$60,000IRO Sec. 12B
QDAP + TVC combined deduction cap
HK$60,000IRO Sec. 12AA; IRO Sec. 12B
Domestic rent deduction cap per year
HK$100,000IRO Sec. 26J
Domestic rent deduction cap (joint assessment, married)
HK$200,000 total (each spouse up to $100,000 if separate tenancies)IRO Sec. 26J
Rental value of employer-provided house/flat (% of net income)
10%IRO Sec. 9
Rental value of employer-provided hostel/service occupancy (% of net income)
8%IRO Sec. 9
Rental value of employer-provided hotel/boarding house (% of net income)
4%IRO Sec. 9
2022/23 salaries tax reduction
100%, ceiling HK$6,000Inland Revenue Ordinance (Cap. 112)
2023/24 salaries tax reduction
100%, ceiling HK$3,000Inland Revenue Ordinance (Cap. 112)
2024/25 salaries tax reduction
100%, ceiling HK$1,500Inland Revenue Ordinance (Cap. 112)
2025/26 salaries tax reduction (proposed)
100%, ceiling HK$3,000Inland Revenue Ordinance (Cap. 112)
Provisional tax basis
100% of current year final taxIRO Sec. 63E
Provisional tax first instalment proportion
75%IRO Sec. 63E
Provisional tax second instalment proportion
25%IRO Sec. 63E
Provisional tax first instalment due month
Usually JanuaryIRO Sec. 63E
Provisional tax second instalment due month
Usually AprilIRO Sec. 63E
Holdover application deadline – before first instalment
28 days before first instalment dueIRO Sec. 63E
Holdover application deadline – before second instalment
14 days before second instalment dueIRO Sec. 63E
Holdover eligibility threshold – income drop
Income expected to drop >10%IRO Sec. 63E
BIR60 issue date
Usually first working day of MayInland Revenue Ordinance (Cap. 112)
Objection to assessment deadline
Within 1 month of Notice of AssessmentInland Revenue Ordinance (Cap. 112)
Appeal to Board of Review deadline
Within 1 month of Commissioner's determinationInland Revenue Ordinance (Cap. 112)
Appeal to Court deadline
Within 1 month of Board's determinationInland Revenue Ordinance (Cap. 112)
Late filing penalty (without reasonable excuse)
Up to HK$10,000 + 3× tax underchargedIRO Sec. 80(2)
Failure to notify chargeability penalty
Fine up to HK$10,000 + 3× tax underchargedIRO Sec. 80(2)
Incorrect return penalty
Fine up to HK$10,000 + 3× tax undercharged; or on conviction HK$50,000 + imprisonmentInland Revenue Ordinance (Cap. 112)
Late payment surcharge – immediate
5% on overdue amountInland Revenue Ordinance (Cap. 112)
Late payment surcharge – additional after 6 months
10% after 6 monthsInland Revenue Ordinance (Cap. 112)
Fraud or wilful evasion penalty
Fine up to HK$50,000 + 3× tax + imprisonment up to 3 yearsInland Revenue Ordinance (Cap. 112)
60-day rule – non-HK employment exemption threshold
Visits totalling ≤60 days in a year = exemptIRO Sec. 8(1A)(b)
Employer MPF contributions – assessability
NOT assessable (exempt)IRO Sec. 8(1A)
Severance / long service payment exemption
Exempt up to statutory entitlementInland Revenue Ordinance (Cap. 112)
Quick Reference
Quick Reference
| Field | Value |
|---|---|
| Country / Territory | Hong Kong SAR, China |
| Tax | Salaries Tax (薪俸稅) |
| Currency | HKD (Hong Kong Dollar) only |
| Year of Assessment | 1 April -- 31 March (2024/25 = 1 Apr 2024 -- 31 Mar 2025) |
| Primary legislation | Inland Revenue Ordinance (IRO), Cap. 112 |
| Tax authority | Inland Revenue Department (IRD) |
| Filing portal | ird.gov.hk / eTAX (etax.ird.gov.hk) |
| Filing deadline | 1 month from BIR60 issue (usually June/July); eTAX: 1 extra month |
| Validated by | Pending — requires sign-off by a Hong Kong CPA or tax representative |
| Skill version | 1.0 |
Progressive Tax Rates (2024/25 onwards)
| Net Chargeable Income Band (HK$) | Rate | Tax in Band | Cumulative Tax |
|---|---|---|---|
| First 50,000 | 2% | 1,000 | 1,000 |
| Next 50,000 | 6% | 3,000 | 4,000 |
| Next 50,000 | 10% | 5,000 | 9,000 |
| Next 50,000 | 14% | 7,000 | 16,000 |
| Remainder | 17% | — | — |
Standard Rate (2024/25 onwards -- Two-Tiered)
| Net Income (HK$) | Rate |
|---|---|
| First 5,000,000 | 15% |
| Exceeding 5,000,000 | 16% |
Personal Allowances (2024/25)
| Allowance | Amount (HK$) |
|---|---|
| Basic allowance | 132,000 |
| Married person's allowance | 264,000 |
| Child allowance (each child) | 130,000 |
| Child allowance -- year of birth (additional) | 130,000 |
| Dependent parent/grandparent (aged 60+) | 50,000 |
| Dependent parent/grandparent (aged 60+, living together) | 100,000 |
| Dependent parent/grandparent (aged 55--59) | 25,000 |
| Dependent parent/grandparent (aged 55--59, living together) | 50,000 |
| Dependent brother/sister allowance | 37,500 |
| Single parent allowance | 132,000 |
| Disabled dependant allowance | 75,000 |
| Personal disability allowance | 75,000 |
Conservative Defaults
| Ambiguity | Default |
|---|---|
| Unknown marital status | Apply basic allowance (HK$132,000) only |
| Unknown whether children qualify | Do not claim child allowance |
| Unknown dependent parent arrangement | Do not claim additional allowance for living together |
| MPF deduction cap | Apply HK$18,000 cap per employee |
| Unknown whether progressive or standard rate lower | Calculate both; apply lower |
| Tax reduction year | Apply 2024/25 reduction: 100%, ceiling HK$1,500 |
Assessable Income
| Component | Treatment |
|---|---|
| Salary, wages, commission | Fully assessable |
| Bonus (discretionary or contractual) | Fully assessable |
| Leave pay, end-of-contract gratuity | Fully assessable (time-apportioned if partly HK service) |
| Housing benefit (provided by employer) | Add rental value: 10% of net income (4% if hotel, 8% if hostel) |
| Share options/awards | Assessable at exercise/vesting (gain = market value - cost) |
| Employer MPF contributions | NOT assessable (exempt under IRO Sec. 8(1A)) |
| Reimbursed expenses (wholly business) | NOT assessable if solely for business |
| Education benefit for children | Assessable as perquisite |
| Severance / long service payment | Exempt up to statutory entitlement |
Deductions (IRO Sec. 12) (IRO Sec. 12)
| Deduction | Limit (2024/25) |
|---|---|
| Self-education expenses | HK$100,000 |
| MPF mandatory contributions (employee) | HK$18,000 |
| Approved charitable donations | 35% of assessable income |
| Elderly residential care expenses | HK$100,000 |
| Home loan interest | HK$100,000 (max 20 years of assessment) |
| Qualifying premiums (VHIS) | HK$8,000 per insured person |
| Qualifying annuity premiums (QDAP) | HK$60,000 |
| MPF voluntary contributions (TVC) | HK$60,000 |
| Domestic rent deduction | HK$100,000 |
Worked Example -- Single Employee
| Item | Amount (HK$) |
|---|---|
| Annual salary | 600,000 |
| Bonus | 50,000 |
| Total assessable income | 650,000 |
| Less: MPF mandatory (capped) | (18,000) |
| Net income | 632,000 |
| Less: Basic allowance | (132,000) |
| Net chargeable income | 500,000 |
Progressive tax:
Standard rate: 632,000 × 15% = 94,800
Tax payable = lower = HK$67,000 Less 2024/25 reduction (100%, max $1,500): HK$65,500
Worked Example -- Married with Children
| Item | Amount (HK$) |
|---|---|
| Annual salary | 1,200,000 |
| Total assessable income | 1,200,000 |
| Less: MPF mandatory (capped) | (18,000) |
| Net income | 1,182,000 |
| Less: Married allowance | (264,000) |
| Less: 2 children | (260,000) |
| Net chargeable income | 658,000 |
Progressive tax:
Standard rate: 1,182,000 × 15% = 177,300
Tax payable = lower = HK$93,860 Less 2024/25 reduction: HK$92,360
BIR60 (Tax Return -- Individuals)
| Item | Detail |
|---|---|
| Form | BIR60 (個別人士報稅表) |
| Issue date | Usually first working day of May |
| Filing deadline (paper) | 1 month from date of issue (usually early June) |
| Filing deadline (eTAX) | 1 additional month (usually early July) |
| Extension | Automatic if filed via eTAX; further extension with tax representative |
| Singed by | Taxpayer (paper) or digital certificate/eTAX password (online) |
Provisional Salaries Tax (IRO Sec. 63E) (IRO Sec. 63E)
| Rule | Detail |
|---|---|
| Basis | Estimated at 100% of current year final tax |
| Payment | In two instalments (75% + 25%) |
| First instalment | Usually January |
| Second instalment | Usually April |
| Holdover | Can apply if income expected to drop >10% or allowances increase |
| Holdover deadline | 28 days before first instalment due or 14 days before second |
Objection and Appeal
| Step | Deadline |
|---|---|
| Objection to assessment | Within 1 month of Notice of Assessment |
| Form | Written notice to Assessor stating grounds |
| Appeal to Board of Review | Within 1 month of Commissioner's determination |
| Appeal to Court | Within 1 month of Board's determination |
Joint Assessment vs Separate Taxation (Married Couples)
| Method | When Beneficial |
|---|---|
| Joint assessment | One spouse has low/no income; unused allowances transfer |
| Separate taxation | Both spouses have high income; standard rate applies separately |
| Personal assessment (joint) | Business losses to offset; mortgage interest claim |
Domestic Rent Deduction (from 2022/23)
| Rule | Detail |
|---|---|
| Cap | HK$100,000 per year |
| Condition | Taxpayer not provided with quarters by employer |
| Condition | Property not owned by taxpayer or connected person |
| Condition | Tenancy agreement registered with Rating and Valuation Department |
| Married | Each spouse claims up to $100,000 if separate tenancies; or total $200,000 if joint assessment |
Tax Reduction History (Recent Years)
| Year of Assessment | Reduction | Ceiling |
|---|---|---|
| 2022/23 | 100% | HK$6,000 |
| 2023/24 | 100% | HK$3,000 |
| 2024/25 | 100% | HK$1,500 |
| 2025/26 (proposed) | 100% | HK$3,000 |
Penalties and Surcharges (IRO Sec. 80(2))
| Offence | Penalty |
|---|---|
| Late filing without reasonable excuse | Up to HK$10,000 + 3× tax undercharged (IRO Sec. 80(2)) |
| Failure to notify chargeability | Fine up to HK$10,000 + 3× tax undercharged |
| Incorrect return | Fine up to HK$10,000 + 3× tax undercharged; or on conviction HK$50,000 + imprisonment |
| Late payment surcharge | 5% immediately on overdue amount; additional 10% after 6 months |
| Fraud or wilful evasion | Fine up to HK$50,000 + 3× tax + imprisonment up to 3 years |
Key Dates Calendar
| Date | Event |
|---|---|
| 1 April | Start of Year of Assessment |
| Early May | BIR60 issued by IRD |
| Early June | Filing deadline (paper) |
| Early July | Filing deadline (eTAX) |
| Oct--Nov | Notice of Assessment issued |
| January | First instalment of provisional tax due |
| 31 March | End of Year of Assessment |
| April | Second instalment of provisional tax due |
Reference Material
| Topic | Reference |
|---|---|
| Charge to salaries tax | IRO Sec. 8 |
| Assessable income | IRO Sec. 9 |
| Deductions | IRO Sec. 12, 12AA, 12B, 12BA, 16AA, 26I, 26J |
| Allowances | IRO Sec. 28--33 |
| Progressive rates | IRO Schedule 2 |
| Standard rate | IRO Sec. 12B / Schedule 2 |
| Provisional tax | IRO Sec. 63--63J |
| Personal assessment | IRO Sec. 41--43 |
| Domestic rent deduction | IRO Sec. 26J |
| Two-tiered standard rate | Inland Revenue (Amendment) (Taxation Proposals Relating to 2024-25 Budget) Ordinance |
| IRD official site | ird.gov.hk |
| eTAX portal | etax.ird.gov.hk |
| Salaries Tax computation guide | DIPN No. 9 (Rev. 2024) |
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