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