Simple Tax System
Hong Kong has a simple tax system with low tax rates
- For corporations, the two-tiered profits tax is fixed at 8.25% for the first HK$2 million of profits and above that, profits are taxed at 16.5%. For unincorporated businesses (mostly partnerships and sole proprietorships), the two-tiered tax rate is set at 7.5% and 15%.
- The standard salaries tax rate is 15% and there are generous personal tax allowances.
- Super tax deductions of up to 300% are available for R&D costs.
- Only income or profits derived in Hong Kong are taxed in Hong Kong. In addition, Hong Kong has so far signed Comprehensive Double Taxation Agreements (CDTAs) with over 40 jurisdictions.
- There is no sales tax or VAT, withholding tax, capital gains tax, estate tax or tax on dividends in Hong Kong.
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Tax Obligations for Non-Residents Working in Hong Kong
Last revision date: 31/08/2021
Global Talent Pool
Hong Kong is home to a broad and deep pool of talented people with the skills, experience and international outlook that drive business, foster creativity and enhance the city’s global competitiveness.
- Both English and Chinese are official languages in Hong Kong, with English regarded as the language of international business in the city.
- The city is home to companies and people with extensive and varied professional expertise and a wide range of essential business knowledge and skills.
- Hong Kong has 22 degree-awarding higher education institutions, including a number of universities that rate highly in reputable international rankings. Hong Kong is well-positioned as a regional education and training hub.
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Talents Service Unit online platform
Last revision date: 31/08/2021
Prime Location
Hong Kong is in the heart of Asia, at the mouth of the Pearl River Delta, on the southern coast of China, and within easy reach of major cities throughout Asia.
- From Hong Kong International Airport (HKIA), air travellers can reach most major Asian cities within four hours, while a five-hour flight connects Hong Kong with half the world’s population.
- HKIA is one of the world’s busiest air cargo hubs, while the city’s container port remains one of the world’s busiest and most efficient ports.
- Every week some 280 container vessel sailings connect to over 600 destinations worldwide. This high degree of global connectivity plus a mature logistics industry puts Hong Kong at the centre of global supply chains.
- The Hong Kong-Zhuhai-Macao Bridge (HZMB) brings the large population and economic potential of the western Pearl River Delta within a three-hour commuting radius of Hong Kong.
- The Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link connects Hong Kong to the 37,900-km national high-speed rail network.
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Hong Kong-Zhuhai-Macao Bridge Hong Kong Section
Last revision date: 31/08/2021
Legal System
Under the Basic Law, the constitutional document of the Hong Kong Special Administrative Region, the city enjoys a high degree of autonomy and is the only common law jurisdiction in China. It retains strong rule of law protections and a sound legal system, underpinned by an independent judiciary.
- The robust and transparent legal system is bolstered by a large and diverse legal community that provides a full range of high-quality legal services.
- Hong Kong courts have a considerable commercial law archive, and freedom of contract is well established. This reliable legal infrastructure attracts overseas and Mainland Chinese companies to set up and do business in Hong Kong.
- As a leading centre for international legal and dispute resolution in the Asia-Pacific region, Hong Kong is a preferred location for doing deals and resolving disputes in the region.
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Safeguarding National Security
Last revision date: 18/10/2021
Press Releases
Clarifications
