Hong Kong Income Tax Rates 2015-16 and Deductions
Hong Kong Income Tax Rate for Individual Tax Payers
Lowest Individual Tax Rate is 2% and Highest Rate is 17%
Note - The maximum tax is subject to the 15% standard rate for income without personal deductions and credits.
Corporate Tax Rates in Hong Kong
Hong Kong corporate tax rate for 2015-16 is 16.5%.
Unincorporated businesses pay a lower corporate tax rate of 15%.
Capital Gains Tax in Hong Kong
There is no capital gain tax for both companies and individuals.
Tax Deductions at Source in Hong Kong
In Hong Kong tax is deducted at source from the following
payments to non residents:
Hong Kong Dates of filing Returns / Reporting and Payment
The tax year in Hong Kong ends on December 31st. Advance payments of
tax are made on the following basis.
An individual whose only income is from a salary is not
obligated to file an annual tax return. His employer deducts tax
from the employee and transfers the payment immediately to the
tax authorities on a monthly basis.
A Self-Employed Individual is obliged to pay 100% of the tax
forecast for a year, or an amount that is the equivalent of 98%
of the tax paid in the previous year, whichever is the lower,
The pre-payment is made in two installments. 40% of the total is
paid by June 20th and the remaining 60% is paid on November 30.
The date for filing an annual return for an individual is July
Fines are imposed for arrears in filing an annual return at the
rate of 120% - 240% of the tax, depending on the length of time
that the return is in arrears.
A Limited Company
A limited company is obligated to submit Financial Statements
within 30 days of the date of approval of the Statements.
Hong Kong Residence