Our Tax System - Hong Kong Legal Hub

Our Tax System

Our Tax System
Hong Kong offers an extremely tax-friendly system, making it one of the most attractive places in the world for businesses.

Tax-free benefits
  • No sales tax or VAT
  • No withholding tax
  • No capital gains tax
  • No tax on dividends or interest from savings
  • No estate tax

Two-tier Company Profits Tax System
  • 8.25 per cent on first HK42 million (approximately US4255,000)
  • 16.5 per cent on remaining profits above HK$2 million
  • "Super deductions" of up to 300 per cent in specific areas such as Research & Development, Corporate Treasury Centre, aircraft leasing

Personal Income Tax
  • Capped at 15 per cent maximum
  • Only income sourced in Hong Kong is taxed
  • Network of comprehensive double taxation agreements (CDTAs) for expatriate residents

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