Hong Kong Tax

Modified on Wed, 07 Dec 2022 at 01:26 PM

Anyone that joined the work environment needs to pay tax on their employment income. A tax year covers a period of 12 months commencing on 1st April and concluding on 31st March of the following year.

Salaries Tax Computation: calculated at progressive rates on your net chargeable income or at standard rate on your net income, whichever is lower.

Salaries Tax: chargeable on most but not all of the income from employment, offices and pension arising in or derived from Hong Kong.

Click here for details on Chargeable & Non-Chargeable Income and Deductions.

Net Chargeable Income =	Total Income - Deductions - Allowances
Net Chargeable Income =	Net Income - Allowances
Net Income =	Total Income - Deductions

Tax Reduction: applicable to profits tax, salaries tax and tax under personal assessment.

Year of Assessment	% of Tax Reduction	Maximum Per Case ($)
2017/ 2018	75	30,000
2018/ 2019	100	20,000
2019/ 2020*	100	20,000
Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2020-21 Budget.

Source: https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salariesrates.htm