Hong Kong features a straightforward tax system with low rates for individuals and businesses, comprising only profits tax, salaries tax, and property tax. Only income or profits derived from Hong Kong are subject to tax.
For individuals, the standard salaries tax rate is only 15%*, with personal allowances available. For corporations, a two-tiered profits tax applies, between 8.25% and 16.5%. The system's simplicity eases compliance, letting companies focus on expansion and innovation in a competitive market.
*First HKD 5 million of the net income will be calculated at the rate of 15%, and 16% for the portion of the exceeding net income