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Hong Kong Tax Guide

Asia
Last verified June 2026
Sources & verification

Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.

PwC Worldwide Tax Summaries — Hong Kong SAROECD Corporate Tax Statistics
TerritorialLow Rate

Best for

  • Zero capital gains

    No CGT on investment, property, or crypto disposals (subject to "investor" classification).

  • Foreign income exempt

    Territorial system — overseas income generally outside the local tax net.

  • No wealth tax

    No annual tax on net worth or assets.

  • No inheritance tax

    Estate and lifetime transfers not subject to inheritance tax.

  • Crypto-friendly

    0% CGT plus favorable foreign-income treatment make this strong for crypto holders.

Personal Tax Score
90/100
Extremely Tax Friendly
Business Tax Score
88/100
Very Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
180 days
Note
No strict day count; employment source determines liability

Income Tax Rates

Top Marginal Rate
17%
Structure
Progressive 2-17% or flat 15-16% standard rate

Foreign Income Treatment

System
Territorial
Details
Only Hong Kong-sourced employment income taxed; foreign income exempt even if remitted

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax for individuals

Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax (estate duty abolished 2006)

Practical Notes

60-day rule for employment - income exempt if in HK ≤60 days/year. No tax on foreign pensions.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
16.5%
Effective Rate Note
16.5% on assessable profits (8.25% first HKD 2M for unincorporated businesses)
Free Zone / Incentives
No specific free zones but various incentives available

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0-4.95%%

VAT / GST

Rate
0%
Note
No VAT or GST

Compliance & Substance

Substance Requirements
Moderate - anti-avoidance rules apply
Compliance Friction
Low - efficient tax system

Notable Regimes

  • Two-tiered profits tax
  • R&D tax incentives
  • IP regime

OECD Pillar Two (15% global minimum tax)

AnnouncedQDMTT from 1 Jan 2025

Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024 introduces QDMTT and IIR from 1 Jan 2025. UTPR not announced.

See full implementation tracker

Tax Treaty Network

US treatyNo
UK treatyYes
US totalizationNo
Total treaties~50

No US tax treaty (long-standing gap). UK treaty in force. Uses Model 2 FATCA IGA. Smaller treaty network than Singapore but covers major Asia-Pacific partners.

See full treaty matrix

Data Sources

PwC Worldwide Tax Summaries — Hong Kong SAROECD Corporate Tax Statistics

Last verified: June 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in Hong Kong?

Hong Kong has a top personal income tax rate of 17%. The tax structure is: Progressive 2-17% or flat 15-16% standard rate. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Hong Kong?

Hong Kong uses a territorial system for foreign income. Only Hong Kong-sourced employment income taxed; foreign income exempt even if remitted

What are the residency requirements for Hong Kong?

Tax residency in Hong Kong generally requires 180 days of physical presence. No strict day count; employment source determines liability. Always verify current rules with official sources.

Is there a wealth tax in Hong Kong?

No, Hong Kong does not have a wealth tax. No wealth tax

What is the corporate tax rate in Hong Kong?

The corporate tax rate in Hong Kong is 16.5%. 16.5% on assessable profits (8.25% first HKD 2M for unincorporated businesses)

US citizen moving to Hong Kong? Read this first.

Hong Kong uses a territorial system for foreign income. For US citizens this often combines well with FEIE.

  • •Foreign-source income may be exempt or only taxed on remittance in Hong Kong, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Hong Kong tax paid is the standard combination.
  • •Self-employment tax (15.3%) is owed in full — Hong Kong has no totalization agreement with the US.
  • •Carefully document whether income is "Hong Kong-source" or foreign-source. The classification drives both Hong Kong and US tax outcomes; getting it wrong is the #1 audit risk in this category.
  • •Residency requires 180 days. Special regimes may further reduce Hong Kong tax — check the country page for current options.
Read the full US-citizen moving-abroad guide

Need someone to actually plan Hong Kong for you?

TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles Hong Kong cases.

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