Hk Tax Overview

---
name: hk-tax-overview
description: "Source-cited draft: tax overview 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-tax-overview"
  jurisdiction: "HK"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Hong Kong Tax Overview

## Hong Kong tax system at a glance

Hong Kong operates a simple, low-rate, territorial (source-based) tax system administered by the Inland Revenue Department under the Inland Revenue Ordinance (Cap. 112). Only income/profits arising in or derived from Hong Kong are taxable; there is no VAT/GST, no capital gains tax, and no withholding tax on dividends or interest.

- **Tax authority** — Inland Revenue Department (IRD)  _([Inland Revenue Ordinance (Cap. 112)](https://www.ird.gov.hk/))_
- **Currency** — Hong Kong Dollar (HKD)  _(Inland Revenue Ordinance (Cap. 112))_
- **Year of assessment** — 1 April to 31 March (the 2024/25 year runs 1 April 2024 to 31 March 2025)  _([Inland Revenue Ordinance (Cap. 112)](https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salariesrates.htm))_
- **Basis of taxation** — Territorial (source-based) — only income/profits arising in or derived from Hong Kong are chargeable; foreign-source income is generally not taxed  _([Inland Revenue Ordinance (Cap. 112)](https://taxsummaries.pwc.com/hong-kong-sar))_
- **Main direct taxes** — Profits tax (business profits), salaries tax (employment income), and property tax (rental income) — there is no comprehensive personal income tax  _(Inland Revenue Ordinance (Cap. 112))_
- **Headline salaries tax (progressive)** — Progressive rates of 2%, 6%, 10%, 14%, 17% on net chargeable income (each band HKD 50,000) %  _([Inland Revenue Ordinance (Cap. 112), Schedule 2](https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salariesrates.htm))_
- **Headline salaries tax (standard rate cap)** — Two-tiered standard rate: 15% on first HKD 5,000,000 of net income, 16% above — whichever produces lower tax than progressive applies %  _([Inland Revenue Ordinance (Cap. 112)](https://hongkongfp.com/2024/02/28/hong-kong-budget-2024-higher-salaries-tax-rate-for-those-earning-over-hk5-million-annually/))_
- **Headline corporate profits tax** — Two-tiered: 8.25% on first HKD 2,000,000 of assessable profits, 16.5% above (corporations) %  _([Inland Revenue Ordinance (Cap. 112), Schedule 8](https://www.ird.gov.hk/eng/faq/2tr.htm))_
- **VAT / GST** — None — Hong Kong has no VAT, GST or sales tax  _([Inland Revenue Ordinance (Cap. 112)](https://taxsummaries.pwc.com/hong-kong-sar))_
- **Capital gains tax** — None — Hong Kong does not levy capital gains tax  _([Inland Revenue Ordinance (Cap. 112)](https://taxsummaries.pwc.com/hong-kong-sar))_
- **Profits tax return filing** — Returns issued in bulk on the first working day of April; due ~1 month from issue, with block extensions by accounting-date code (extended dates commonly Nov for 31 Dec year-ends, mid-Aug for 31 Mar year-ends) ((approx — confirm))  _([Inland Revenue Ordinance (Cap. 112), section 51](https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/profitsrates.htm))_
- **Individual tax return filing** — Individual tax return (BIR60) issued early May; due within 1 month of issue (3 months if filed for sole-proprietorship business), with a 1-month extension for e-filing ((approx — confirm))  _(Inland Revenue Ordinance (Cap. 112), section 51)_

## 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-tax-overview` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/hk-tax-overview. If neither is available, confirm every figure against the official source pages cited above before relying on it.