Hk Corporate Income Tax

---
name: hk-corporate-income-tax
description: "Source-cited draft: corporate income tax for Hong Kong (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/hk-corporate-income-tax"
  jurisdiction: "HK"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Hong Kong Corporate Income Tax

## Profits tax (corporate)

Hong Kong levies profits tax on income arising in or derived from a trade, profession or business carried on in Hong Kong (territorial basis). A two-tiered rate applies, and there is no tax on capital gains or on dividends/interest paid to non-residents.

- **Corporation rate — first HKD 2,000,000 of assessable profits** — 8.25% %  _([Inland Revenue Ordinance (Cap. 112), Schedule 8](https://www.ird.gov.hk/eng/faq/2tr.htm))_
- **Corporation rate — profits above HKD 2,000,000** — 16.5% %  _([Inland Revenue Ordinance (Cap. 112), Schedule 8](https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/profitsrates.htm))_
- **Unincorporated business rate — first HKD 2,000,000** — 7.5% %  _([Inland Revenue Ordinance (Cap. 112), Schedule 8](https://www.ird.gov.hk/eng/faq/2tr.htm))_
- **Unincorporated business rate — above HKD 2,000,000** — 15% %  _([Inland Revenue Ordinance (Cap. 112), Schedule 8](https://www.ird.gov.hk/eng/faq/2tr.htm))_
- **Two-tiered rate — group restriction** — Only ONE entity within a group of connected entities may elect the lower-tier (8.25%/7.5%) rate in a year of assessment  _([Inland Revenue Ordinance (Cap. 112), Schedule 8AA](https://www.ird.gov.hk/eng/faq/2tr.htm))_
- **Tax base** — Profits arising in or derived from a trade, profession or business carried on in Hong Kong (excluding profits from the sale of capital assets); offshore-source profits generally not chargeable  _([Inland Revenue Ordinance (Cap. 112), section 14](https://taxsummaries.pwc.com/hong-kong-sar/corporate/income-determination))_
- **Capital gains** — Not taxable — Hong Kong has no capital gains tax  _([Inland Revenue Ordinance (Cap. 112)](https://taxsummaries.pwc.com/hong-kong-sar/corporate/taxes-on-corporate-income))_
- **Withholding tax on dividends** — 0% % (no withholding tax on dividends)  _([Inland Revenue Ordinance (Cap. 112)](https://taxsummaries.pwc.com/hong-kong-sar/corporate/withholding-taxes))_
- **Withholding tax on interest** — 0% % (no withholding tax on interest)  _([Inland Revenue Ordinance (Cap. 112)](https://taxsummaries.pwc.com/hong-kong-sar/corporate/withholding-taxes))_
- **Withholding tax on royalties to a non-resident (non-associate)** — Effective 4.95% (16.5% on deemed assessable profits of 30% of gross); 2.475% on first HKD 6,666,667 where two-tiered rate applies %  _([Inland Revenue Ordinance (Cap. 112), section 15(1)(a)/(b) and 21A](https://taxsummaries.pwc.com/hong-kong-sar/corporate/withholding-taxes))_
- **Withholding tax on royalties to an associated non-resident (IP previously HK-owned)** — Effective up to 16.5% (deemed assessable profits = 100% of royalties); 8.25% on first HKD 2,000,000 where two-tiered applies %  _([Inland Revenue Ordinance (Cap. 112), section 21A](https://taxsummaries.pwc.com/hong-kong-sar/corporate/withholding-taxes))_
- **Profits tax return filing** — Issued on first working day of April; due within 1 month, with block extensions by accounting-date code (e.g. 'D' code 31 Dec year-end ~mid-November; 'M' code 31 Mar year-end ~mid-August) ((approx — confirm))  _([Inland Revenue Ordinance (Cap. 112), section 51](https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/profitsrates.htm))_
- **Provisional profits tax** — Provisional profits tax for the following year is charged with the final assessment and is generally payable with the final tax in instalments ((approx — confirm))  _(Inland Revenue Ordinance (Cap. 112), Part X)_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `hk-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/hk-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.