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.