ARTHUR CHUNG
PACIFIC JADE TAX
OUR JURISDICTIONS —
Hong Kong
LAST UPDATED 21/07/2023
AT A GLANCE
You can find the Hong Kong Special Administrative Region (SAR) on the southeast coast of China, with official languages of both Cantonese and English. Hong Kong continues to closely link its official currency – the Hong Kong dollar (HKD) – to the US dollar.
Between 1841 and 1997, Hong Kong was a self-governed British colony, but it became an SAR of China in July 1997. It now operates under a ‘one country, two systems’ policy with China and – according to the Basic Law of the policy – Hong Kong is guaranteed a high degree of autonomy. This covers all matters, except foreign and defence affairs, for the next 50 years after the transfer.
Previously centred around labour-intensive and manufacturing-heavy activities, Hong Kong has now moved towards a high value-added and knowledge-based economy. It’s heavily focused on financial services, international trade, and tourism. And since the handover, Hong Kong is now the leading stock market for Chinese organisations looking to list overseas and is a major renminbi (CNY) offshore centre.
Hong Kong is a significant free economy and is a member of the Asia Pacific Cooperation and the World Trade Organization (WTO).
Our local Tax Natives in Hong Kong can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing multi-million-dollar deals, we’ll get you the advice you need. Just say the word and we can link you with a local expert who can answer all your questions.
THE HEADLINES
- A corporate income tax rate of 8.25% applies on the first $2million (HKD) of assessable profits and there’s a rate of 16.5% for all profits beyond this.
- The rate of personal income tax ranges from 2% to 17%
- There is no VAT rate in Hong Kong
Tax experts in the region
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