Hong Kong Tax Rates
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Social Security & Taxation
Since Hong Kong is not one of the globe’s tax havens, doing your taxes in Hong Kong is unavoidable for all expatriates. Fortunately, the usual Hong Kong income tax rate is fairly low. Our InterNations guide introduces you to the Hong Kong income tax for expats and to general taxation in Hong Kong.
When it comes to living in Hong Kong, income tax is a topic that expats will not be able to avoid. There may be rumors that there is no Hong Kong income tax at all, but unfortunately, we have to tell you that this is not true: Contrary to other popular expat destinations, especially in the Middle East, there is indeed such as a thing as taxing your income in Hong Kong. Nevertheless, rates for the Hong Kong income tax are fairly low and concepts such as sales, capital gains, and value-added tax are (mostly) unheard of.
The local salaries tax, which applies to foreign and local residents alike, has rates rising progressively for higher incomes. Most expats, however, may shake their head in disbelief once they see the modest maximum rate. Rental incomes and profits from self-employment are also subject to taxation. But there are still a number of allowances and deductions you can claim.
It is no surprise then, that Hong Kong is a popular place for expats wishing to escape their tax burden. In this article, we’ll give you a brief run-through concerning Hong Kong income tax, allowances, and tax returns.
As an expat with a long-term Hong Kong visa, you are required to pay Hong Kong income tax, just like every other fiscal resident. We are now going to briefly explain how the tax system works. By no means, however, does the following information constitute any legal advice. For more detailed questions on taxation in Hong Kong, contact the Inland Revenue Department (IRD). We’d also recommend you talk to a trustworthy tax advisor for advice on your individual situation.