Hong Kong (China)
Eastern Asia • UTC+8 • Asia/Hong_KongHong Kong's Territorial Tax System
Hong Kong taxes only income sourced within its territory. There is no tax on foreign income, and the system features low personal and corporate tax rates.
Income Tax
2%–17%
Progressive rates on local income
Corporate Tax
16.5%
Standard corporate tax rate
VAT / GST
0%
No VAT or sales tax
Nomad Visa
Not Available
No dedicated program
Tax System Overview
Hong Kong operates a territorial tax system, taxing only income sourced within the territory. The system includes low personal and corporate tax rates, with no VAT or sales tax.
System Type
Territorial tax system
Resident Taxation
Taxed only on Hong Kong-sourced income.
Non-Resident Taxation
Non-residents are taxed only on Hong Kong-sourced income.
Tax Year
April 1 – March 31
Income Tax Bands
Hong Kong's progressive income tax bands based on annual taxable income in HKD (2025).
Tax Treaty
Double Taxation Agreements reduce withholding taxes and avoid double taxation on income from foreign sources.
United Kingdom
Treaty ActiveThe Hong Kong-UK double taxation treaty prevents individuals and businesses from being taxed twice on the same income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
- Provides relief for pensions and certain social security benefits.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United Kingdom
Agreement ActiveHong Kong and the UK have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for UK–Hong Kong workers.
- Allows workers who split careers between the two countries to combine contribution periods.
- Applies to employees, self-employed, and certain government workers.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
16.5% standard rate for corporations
VAT Registration
No VAT system in place
Freelancer Rules
Freelancers are taxed on Hong Kong-sourced income only.
Crypto Policy
Cryptocurrency gains are treated as business income if trading is frequent.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No tax on foreign income
- Low corporate tax rate
Filing Roadmap
Register for a Tax File Number
Obtain a tax file number from the Inland Revenue Department if you are a new taxpayer.
Gather Income Documents
Collect all relevant income documents, including employment slips and business income records.
Complete Your Tax Return
Fill out the appropriate tax return form, either BIR60 for individuals or BIR51 for businesses.
Submit Your Tax Return
File your completed tax return with the Inland Revenue Department by the deadline.
Pay Any Tax Due
Ensure any tax owed is paid by the due date to avoid penalties.