IRD Income Tax Brackets in Hong Kong SAR 2024-2025

Several tax categories apply to individuals and businesses in the Hong Kong Special Administrative Region of the People’s Republic of China (PRC) (referred to here as Hong Kong SAR). Different tax brackets and tax rates may also apply to a taxpayer if they are a property owner or employer. The taxation system is administered by the official tax body, the Inland Revenue Department (IRD) of The Government of the Hong Kong Special Administrative Region (SAR) of the PRC.

The Inland Revenue Ordinance (Cap. 112) provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with the tax laws of Hong Kong SAR.

Here you will learn about:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• property tax rates
• withholding tax rates for residents and non-residents
• sales tax rates

Headline Tax Rates in Hong Kong SAR

Personal Income Tax (PIT) Brackets for Individuals in Hong Kong SAR 2024-2025

An individual taxpayer’s taxable income will be assessed based on whether they are ordinarily resident in Hong Kong SAR. An individual is ordinarily resident if they habitually reside in Hong Kong SAR apart from temporary or occasional absences. Tax on an individual’s salary is calculated at progressive rates either on their net chargeable income or at a standard rate on their net income, whichever is lower.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Hong Kong SAR 2024-2025

Hong Kong SAR implements a two-tiered profits tax rates regime applicable to corporations and unincorporated businesses as tabulated below. To eliminate tax avoidance, a group of connected entities can only nominate one entity within the group to enjoy the two-tiered tax rates for a given year of assessment.

There are special rules in place for determining the tax liabilities of certain industries such as shipping, air services, and financial services. For instance, qualifying profits from qualifying shipping-related activities, such as ship management or ship broking activities, carried out in Hong Kong SAR, are eligible for tax exemption. These are subject to specified conditions.

Corporate Income Tax Due Dates

Property Tax in Hong Kong SAR

Hong Kong SAR levies an annual property tax to the owner of any land or buildings at a standard rate of 15% on the net assessable value of the property. Government and consular parties are exempt from property tax. While there is no Capital Gains Tax (CGT) in Hong Kong SAR, gains from disposal of assets may be considered as trading gains, taxable under income profits tax. 

Withholding Tax Rates for Residents and Non-Residents in Hong Kong SAR

In general, withholding tax (WHT) applies to royalties but not to dividends and interest. Should WHT be imposed in the future on dividends or interest, a cap will be applied. 

Hong Kong SAR is a signatory to certain double taxation treaties (DTTs); as such, the WHT rate varies depending on whether the taxpayer is in a treaty country or not.

Sales Tax in Hong Kong SAR

Hong Kong SAR does not have Value-Added Tax (VAT), Goods and Services Tax (GST), or sales tax.