Hong Kong Taxation Service

Hong Kong Tax Rates of Profits Tax - Simple and Low tax rate

Unlike most countries which apply both residential jurisdiction and territorial jurisdiction in determining the tax liability of a person, Hong Kong uses only the territorial source jurisdiction and disregards the concept of residence. Thus, only profits sourced in Hong Kong would be taxable whereas a person's overseas income will not be taxable.

Profits Tax - Tax Rates Applicable to Corporations

2018/19 onwards : Assessable profits over $2,000,000 - 16.50%; Assessable profits below $2,000,000 - 8.25%;
2008/09 onwards : 16.5%
Tax Waive:

• 100% of the 2023/24 profits tax is waived subject to a ceiling of $3,000 per case.
• 100% of the 2022/23 profits tax is waived subject to a ceiling of $6,000 per case.
• 100% of the 2021/22 profits tax is waived subject to a ceiling of $10,000 per case.
• 100% of the 2020/21 profits tax is waived subject to a ceiling of $10,000 per case.
• 100% of the 2019/20 profits tax is waived subject to a ceiling of $20,000 per case.
• 100% of the 2018/19 profits tax is waived subject to a ceiling of $20,000 per case.
• 75% of the 2017/18 profits tax is waived subject to a ceiling of $30,000 per case.

Profits Tax - Tax Rates Applicable to Unincorporated Businesses

2018/19 onwards: Assessable profits over $2,000,000 - 15%; Assessable profits below - 7.5%
2008/09 onwards : 15%
Tax Waive:

• 100% of the 2023/24 profits tax is waived subject to a ceiling of $3,000 per case.
• 100% of the 2022/23 profits tax is waived subject to a ceiling of $6,000 per case.
• 100% of the 2021/22 profits tax is waived subject to a ceiling of $10,000 per case.
• 100% of the 2020/21 profits tax is waived subject to a ceiling of $10,000 per case.
• 100% of the 2019/20 profits tax is waived subject to a ceiling of $20,000 per case.
• 100% of the 2018/19 profits tax is waived subject to a ceiling of $20,000 per case.
• 75% of the 2017/18 profits tax is waived subject to a ceiling of $30,000 per case.