Tax Overview in Hong Kong

Tax overview for Hong Kong (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Hong Kong · tax year 2025 · changed 25 Jun 2026

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Key figures: Hong Kong, 2025

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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 ↗

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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)

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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)