Hong Kong’s tax system is often described as simple and relatively low-rate, with a strong focus on profits tax, salaries tax and property tax. Rates, allowances and thresholds change over time — always confirm the latest figures with the Inland Revenue Department (IRD) or our advisors before making decisions.
Key concepts (overview)
- Profits tax — charged on profits arising in or derived from Hong Kong from a trade, profession or business (territorial features apply; two-tier rates may be relevant for qualifying entities).
- Salaries tax — charged on Hong Kong employment income, with personal allowances and progressive/standard rate mechanisms.
- Property tax — generally relevant to rental income from Hong Kong property.
Profits tax (companies) — years of assessment 2023/24 to 2025/26
Under the two-tiered profits tax rates regime (from year of assessment 2018/19 onwards), qualifying corporations are charged as follows. Connected-entity nomination rules may limit which entity in a group can use the lower tier — see IRD guidance.
| Year of assessment | First HK$2,000,000 | Remainder |
|---|---|---|
| 2023/24 | 8.25% | 16.5% |
| 2024/25 | 8.25% | 16.5% |
| 2025/26 | 8.25% | 16.5% |
Unincorporated businesses (where eligible): 7.5% on the first HK$2,000,000 and 15% on the remainder. One-off final-tax reductions (if any) are budget measures and are not shown as ongoing rates — confirm on IRD for the year that applies to you.
Salaries tax — progressive bands (2023/24 to 2025/26)
Tax payable is generally the lower of (a) progressive rates on net chargeable income and (b) standard rate on net income (before allowances).
| Net chargeable income | Rate |
|---|---|
| First HK$50,000 | 2% |
| Next HK$50,000 | 6% |
| Next HK$50,000 | 10% |
| Next HK$50,000 | 14% |
| Remainder | 17% |
| Year of assessment | Standard rate |
|---|---|
| 2023/24 | 15% on net income |
| 2024/25 and 2025/26 | 15% on first HK$5,000,000 of net income; 16% on the remainder |
Personal allowances and deduction ceilings change by year — see IRD PAM 61 / tax rate tables. We do not reproduce a full allowance schedule here.
Business Registration (BR) fees — main certificate totals
Amounts payable for a business registration certificate are generally determined by the commencement date of the certificate (see IRD fee table). Figures below are totals (registration fee + levy) for the main business registration certificate.
| Certificate commencement | 1-year total | 3-year total |
|---|---|---|
| 1 Apr 2023 – 31 Mar 2024 | 2,150 | 5,650 |
| 1 Apr 2024 – 31 Mar 2025 | 2,200 | 5,870 |
| 1 Apr 2025 – 31 Mar 2026 | 2,200 | 6,020 |
| 1 Apr 2026 – 31 Mar 2027 | 2,350 | 6,170 |
Branch registration fees differ. Companies Registry incorporation fees are separate from IRD BR amounts. Always check the current IRD BR fee & levy table before paying.
Official sources: IRD Profits Tax · Two-tier FAQ · Profits tax rates CSV · Salaries tax rates CSV · IRD PAM 61 (allowances & rates) · IRD BR fee & levy table (PDF) · Brief Guide to Taxes 2025–2026