Find out all you need to know about employee’s income tax in Hong Kong here.
What is the income tax rate in Hong Kong?
The Hong Kong tax system applies a progressive tax structure, with rates as follows:
| Taxable Income | Tax Rate |
|---|---|
| HKD 50,000,000 | 2% |
| HKD 50,001.00 – HKD 100,000.00 | 6% |
| HKD 100,000.01 – HKD 150,000,000 | 10% |
| HKD 150,000,001 – HKD 200,000,000 | 14% |
| over HKD 200,000,001 | 17% |
How to calculate income tax
In Hong Kong, income tax calculation method is determined by the Inland Revenue Department (IRD).
Is there a difference between calculating income tax for local and foreign employees?
Local and foreign employees are subject to Hong Kong’s income tax laws and regulations. However, should a foreign employee stay in Hong Kong for less than 60 days, they are not obligated to pay any taxes.