OpenAccountants/Hong Kong/Hong Kong Tax Overview

Hong Kong Tax Overview

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: tax overview 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.

Use Hong Kong Tax Overview in your AI agent

Add OpenAccountants so your AI can retrieve this Guide during a conversation. Any output remains a draft unless a qualified professional separately reviews your specific facts.

View source on GitHub Add to your AI

Use this with your AI

Use OpenAccountants for Tax Overview in Hong Kong.

Paste it into ChatGPT, Claude, or any AI that has OpenAccountants added. Add it to your AI first if you haven't.

Need help applying this to your situation?

Send the OA team a short request. We will check accountant availability; this Guide’s author and reviewers are not automatically assigned to your request. Scope and fees are agreed separately before professional work begins.

Request professional help →

Key figures — Hong Kong, 2025

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

Tax authority

Inland Revenue Department (IRD)Inland Revenue Ordinance (Cap. 112)View source ↗

Currency

Hong Kong Dollar (HKD)Inland Revenue Ordinance (Cap. 112)

Year of assessment

1 April to 31 March (the 2024/25 year runs 1 April 2024 to 31 March 2025)Inland Revenue Ordinance (Cap. 112)View source ↗

Basis of taxation

Territorial (source-based) — only income/profits arising in or derived from Hong Kong are chargeable; foreign-source income is generally not taxedInland Revenue Ordinance (Cap. 112)View source ↗

Main direct taxes

Profits tax (business profits), salaries tax (employment income), and property tax (rental income) — there is no comprehensive personal income taxInland Revenue Ordinance (Cap. 112)

Headline salaries tax (progressive)

Progressive rates of 2%, 6%, 10%, 14%, 17% on net chargeable income (each band HKD 50,000)Inland Revenue Ordinance (Cap. 112), Schedule 2View source ↗

Headline salaries tax (standard rate cap)

Two-tiered standard rate: 15% on first HKD 5,000,000 of net income, 16% above — whichever produces lower tax than progressive appliesInland Revenue Ordinance (Cap. 112)View source ↗

Headline corporate profits tax

Two-tiered: 8.25% on first HKD 2,000,000 of assessable profits, 16.5% above (corporations)Inland Revenue Ordinance (Cap. 112), Schedule 8View source ↗

VAT / GST

None — Hong Kong has no VAT, GST or sales taxInland Revenue Ordinance (Cap. 112)View source ↗

Capital gains tax

None — Hong Kong does not levy capital gains taxInland Revenue Ordinance (Cap. 112)View source ↗

Profits tax return filing

Returns issued in bulk on the first working day of April; due ~1 month from issue, with block extensions by accounting-date code (extended dates commonly Nov for 31 Dec year-ends, mid-Aug for 31 Mar year-ends) ((approx — confirm))Inland Revenue Ordinance (Cap. 112), section 51View source ↗

Individual tax return filing

Individual tax return (BIR60) issued early May; due within 1 month of issue (3 months if filed for sole-proprietorship business), with a 1-month extension for e-filing ((approx — confirm))Inland Revenue Ordinance (Cap. 112), section 51

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

The full Guide

Hong Kong tax system at a glance

Hong Kong operates a simple, low-rate, territorial (source-based) tax system administered by the Inland Revenue Department under the Inland Revenue Ordinance (Cap. 112). Only income/profits arising in or derived from Hong Kong are taxable; there is no VAT/GST, no capital gains tax, and no withholding tax on dividends or interest.

Tax authority — Inland Revenue Department (IRD) (Inland Revenue Ordinance (Cap. 112))
Currency — Hong Kong Dollar (HKD) (Inland Revenue Ordinance (Cap. 112))
Year of assessment — 1 April to 31 March (the 2024/25 year runs 1 April 2024 to 31 March 2025) (Inland Revenue Ordinance (Cap. 112))
Basis of taxation — Territorial (source-based) — only income/profits arising in or derived from Hong Kong are chargeable; foreign-source income is generally not taxed (Inland Revenue Ordinance (Cap. 112))
Main direct taxes — Profits tax (business profits), salaries tax (employment income), and property tax (rental income) — there is no comprehensive personal income tax (Inland Revenue Ordinance (Cap. 112))
Headline salaries tax (progressive) — Progressive rates of 2%, 6%, 10%, 14%, 17% on net chargeable income (each band HKD 50,000) % (Inland Revenue Ordinance (Cap. 112), Schedule 2)
Headline salaries tax (standard rate cap) — Two-tiered standard rate: 15% on first HKD 5,000,000 of net income, 16% above — whichever produces lower tax than progressive applies % (Inland Revenue Ordinance (Cap. 112))
Headline corporate profits tax — Two-tiered: 8.25% on first HKD 2,000,000 of assessable profits, 16.5% above (corporations) % (Inland Revenue Ordinance (Cap. 112), Schedule 8)
VAT / GST — None — Hong Kong has no VAT, GST or sales tax (Inland Revenue Ordinance (Cap. 112))
Capital gains tax — None — Hong Kong does not levy capital gains tax (Inland Revenue Ordinance (Cap. 112))
Profits tax return filing — Returns issued in bulk on the first working day of April; due ~1 month from issue, with block extensions by accounting-date code (extended dates commonly Nov for 31 Dec year-ends, mid-Aug for 31 Mar year-ends) ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), section 51)
Individual tax return filing — Individual tax return (BIR60) issued early May; due within 1 month of issue (3 months if filed for sole-proprietorship business), with a 1-month extension for e-filing ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), section 51)

Pasting this into your AI section by section is slow and easy to get wrong. Add to your AI and it loads the whole Guide automatically — with dependency resolution and conservative defaults, every figure cited to its source.

All Hong Kong Guides

More Hong Kong Tax Guides

Other Hong Kong computations in the OpenAccountants Tax Library.

Hong Kong VAT / GST hk-mpf Hong Kong Corporate Income Tax Hong Kong Company Formation & Entity Choice hk-salaries-tax hong-kong-tax

See all Hong Kong Guides →

Hong Kong tax system at a glance

Tax authority — Inland Revenue Department (IRD) (Inland Revenue Ordinance (Cap. 112))

Currency — Hong Kong Dollar (HKD) (Inland Revenue Ordinance (Cap. 112))

Year of assessment — 1 April to 31 March (the 2024/25 year runs 1 April 2024 to 31 March 2025) (Inland Revenue Ordinance (Cap. 112))

Basis of taxation — Territorial (source-based) — only income/profits arising in or derived from Hong Kong are chargeable; foreign-source income is generally not taxed (Inland Revenue Ordinance (Cap. 112))

Main direct taxes — Profits tax (business profits), salaries tax (employment income), and property tax (rental income) — there is no comprehensive personal income tax (Inland Revenue Ordinance (Cap. 112))

Headline salaries tax (progressive) — Progressive rates of 2%, 6%, 10%, 14%, 17% on net chargeable income (each band HKD 50,000) % (Inland Revenue Ordinance (Cap. 112), Schedule 2)

Headline salaries tax (standard rate cap) — Two-tiered standard rate: 15% on first HKD 5,000,000 of net income, 16% above — whichever produces lower tax than progressive applies % (Inland Revenue Ordinance (Cap. 112))

Headline corporate profits tax — Two-tiered: 8.25% on first HKD 2,000,000 of assessable profits, 16.5% above (corporations) % (Inland Revenue Ordinance (Cap. 112), Schedule 8)

VAT / GST — None — Hong Kong has no VAT, GST or sales tax (Inland Revenue Ordinance (Cap. 112))

Capital gains tax — None — Hong Kong does not levy capital gains tax (Inland Revenue Ordinance (Cap. 112))

Profits tax return filing — Returns issued in bulk on the first working day of April; due ~1 month from issue, with block extensions by accounting-date code (extended dates commonly Nov for 31 Dec year-ends, mid-Aug for 31 Mar year-ends) ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), section 51)

Individual tax return filing — Individual tax return (BIR60) issued early May; due within 1 month of issue (3 months if filed for sole-proprietorship business), with a 1-month extension for e-filing ((approx — confirm)) (Inland Revenue Ordinance (Cap. 112), section 51)