Hong Kong
Top Income Tax
17%
Marginal rate
Corporate Tax
16.5%
Standard rate
VAT / Sales Tax
0%
Standard rate
Capital Gains
0%
Standard rate
Overview
Hong Kong operates under a territorial tax system with no capital gains tax, no VAT, and low income tax rates capped at 15-17%. The city is a major financial center connecting East and West. Despite recent political changes, it remains a top business hub.
Income Tax Brackets
| Income Range (HKD) | Tax Rate |
|---|---|
| 0 - 50,000 | 2% |
| 50,000 - 100,000 | 6% |
| 100,000 - 150,000 | 10% |
| 150,000 - 200,000 | 14% |
| 200,000+ | 17% |
Salaries tax with standard rate of 15% on net income as alternative. Territorial taxation - only HK-sourced income taxed.
Corporate Tax
Standard Rate
16.5%
8.25% on first HKD 2M of profits, 16.5% thereafter. Two-tiered system.
VAT / Sales Tax
Standard Rate
0%
No VAT or sales tax in Hong Kong.
Capital Gains Tax
Standard Rate
0%
No capital gains tax.
Social Security Contributions
Employee
5%
Employer
5%
Self-Employed
5%
MPF (Mandatory Provident Fund): 5% each, capped at HKD 1,500/month.
Special Tax Regimes
Two-Tiered Profits Tax
8.25% rate on first HKD 2M of assessable profits. 16.5% on the remainder.
Eligibility: All companies. Only one nominated entity per group can benefit.
Pros & Cons
Pros
- No capital gains tax
- No VAT
- Territorial taxation
- Low income tax (max 17%)
- Major financial center
Cons
- High cost of living especially housing
- No digital nomad visa
- Political uncertainty
- Limited space
Living Indicators
Cost of Living Index
Expensive
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Hong Kong is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Hong Kong government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.