Hong Kong Corporate Tax Calculator
Hong Kong uses a two-tiered profits tax system:
- First HK$2 million: 8.25% for corporations
- Remaining profits: 16.5% for corporations
Assessable Profit:
Tax on First Tier (≤$2M):
Tax on Second Tier (>$2M):
Total Tax Payable:
Effective Tax Rate:
Note: This is a simplified calculation. Please consult with a tax professional for detailed advice.
Here’s a comprehensive table summarizing all you need to know about Hong Kong Corporate Tax:
| Aspect | Details |
|---|---|
| Standard Tax Rate | 16.5% for corporations46 |
| Two-Tiered Tax System | First HK$2 million: 8.25% Remaining profits: 16.5%6 |
| Tax Base | Territorial principle: Only profits sourced in Hong Kong are taxable10 |
| Tax Year | April 1 to March 316 |
| Filing Deadline | Generally 1 month after issuance of tax return2 |
| Extended Filing Deadlines | “N” code: 2 May 2024 “D” code: 15 August 2024 “M” code: 15 November 2024 “M” code (loss cases): 31 January 20252 |
| E-Filing Extension | Additional 1 month if filed electronically9 |
| Capital Gains Tax | Not applicable10 |
| Dividend Tax | Not taxable if paid from profits already subject to Hong Kong profits tax7 |
| Key Tax Incentives | – Foreign-Sourced Income Exemption (FSIE) – R&D deductions – Environmental protection expenses deduction – Intellectual property rights deductions1012 |
| Penalties for Late Filing | HK$1,200 to HK$10,000 plus a percentage of unpaid tax2 |
| Offshore Income | Generally not taxable, subject to FSIE regime conditions10 |
| Double Tax Treaties | Hong Kong has agreements with numerous countries10 |
| Transfer Pricing | Arm’s length principle applies, documentation required for certain enterprises11 |
This table provides a concise overview of the key aspects of Hong Kong’s corporate tax system, including rates, filing requirements, incentives, and other important considerations for businesses operating in Hong Kong.