Tax System in Hong Kong

There are only three direct taxes which Hong Kong does impose; profits, salaries and property.
Hong Kong does not impose taxes on VAT, sales, capital gains, dividends and estate.

Salaries Tax

All salary earners are liable to report total income in Tax Return – Individuals form. You can be charged salaries tax for your income arising in or derived from any employment or pension in Hong Kong. However, personal assessment may advantage to you if you have income that is chargeable to profits tax and property tax. (Salaries Tax Rate: 15%)

Profits Tax

Profits Tax is payable by every company carrying on a trade, profession or business in Hong Kong on profits arising in or derived from Hong Kong from that trade, profession or business. Profits which have a foreign source (often termed “offshore profits”) are thus generally beyond the territorial scope of Hong Kong’s taxation system, including those derived.

Property Tax

If you have derived rental income from letting properties situated in Hong Kong, you should fulfil your Property Tax obligations. Your tax liabilities may be reduced if you elect Personal Assessment. (Property Tax Rate: 15%)