| Hong Kong Tax Rates of Profits Tax Here you can know more about the tax rates of profits tax for different years of assessment, including profits tax related to corporations, unincorporated businesses and non-resident entertainers and sportsmen.
(1) Normal Rate
Tax Rates Applicable to Corporations - 2008/09 onwards: 16.5%
Tax Rates Applicable to Unincorporated Businesses - 2008/09 onwards: 15%
(2) Concessionary rate
A tax rate at 50% of the normal profits tax rate will be applied to trading profits and interest income received or derived from qualifying debt instruments issued in Hong Kong, and to offshore business of professional reinsurance companies.
All taxpayers are subject to the same corporation or unincorporated business tax rate irrespective of their residential status. However, any permanent or temporary resident of Hong Kong except a person under the age of 18 (unless both his parents have passed away) may obtain relief from the standard rate of tax on his profits and income by electing to be assessed under Personal Assessment. An election may offer relief where the tax computed under Personal Assessment is less than the aggregate amount of the tax charged separately under Profits Tax, Salaries Tax and Property Tax.
Retained Amount Applicable to Non-Resident Entertainers and Sportsmen
- Performance procured directly with the non-resident entertainers or sportsmen - 2008/09 onwards: 15% (10% of gross amount payable to be retained)
- Performance procured through a non-resident agent who is an individual person or a partnership - 2008/09 onwards: 15% (10% of gross amount payable to be retained)
- Performance procured through a non-resident agent who is a corporate agent or a corporation - 2008/09 onwards: 16.5% (11% of gross amount payable to be retained)
Hong Kong Tax Rates of Property TaxTax rate of property tax for 2008/09 onwards in Hong Kong is 15%.
Property Tax is charged on the owners of land and/or buildings in Hong Kong
and is computed at the standard rate on the net assessable value of the property. The
standard rate is 15% for year of assessment from 2008/09 onwards.
Hong Kong Tax Rates of Salaries Tax & Personal AssessmentHow to Calculate the Amount of Tax that You Should Pay? Your net chargeable income, ie assessable income after deductions and allowances, is charged at progressive rates. But if what you need to pay on the basis of your net chargeable income exceeds the tax charged at standard rate on your net total income, ie assessable income after deductions but before allowances, then you have to pay the lower amount of tax.
Year of Assessment 2008/09
Net Chargeable Income / Rate / Tax
On the First 40,000 / 2% / 800
On the Next 40,000 / 7% / 2,800
On the Next 40,000 / 12% / 4,800
Remainder / 17%
For 2008/09, 100% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to the maximum of $8,000 per case.
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