Hong Kong Taxes and duties

Due to its taxation friendly environment, Hong Kong is the right place for your business.

Income Tax (Net profits tax)

  • Corporate – 16.5% (8.25% – on the first $2 million of profit)
  • Individual – 15%

Employee Social Security (Mandatory Provident Fund)

  • Employer – 5%
  • Employee – 5%

VAT – 0%


  • Dividend – 0%
  • Interest – 0%
  • Royalties – 5%-16.5%

“NIL” Profit Tax Return

Audit of financial statements is required for all companies, including companies falling within the reporting exemption.

Offshore Tax Exemption

Income Tax exemption for foreign income.

COLVASS Consulting can help you:

  • keep proper business records
  • prepare and maintain accounting documents
  • book-keeping
  • conduct an audit of financial statements
  • Filing tax return

Profit Tax Return

IRD (Inland Revenue Department) will issue the first PTR (Profit Tax Return) of the company within 1 to 2 months before the 2nd anniversary of the company incorporation.

Financial Year

The first financial year starts on the first day of the accounting reference period and ends on the last day of that period.

Accounting Reference Period

A company is required to determine an accounting reference period. The company will prepare the annual financial statements to this period.

The profit tax rate for corporations in Hong Kong is 16.5%.

Accounting Reference Period

A company shall determine its accounting reference period to which the company’s annual financial statements will be prepared.

Examples of a financial year:

Financial Year ends atTax Filing Due DateDocuments for Audit
31. March15. NovemberNo later than 1. September
31. December15. AugustNo later than 1. June
Other date (e.g. 30. June)30. AprilNo later than 1. February

For further information on the Hong Kong tax system please visit Inland Revenue Department