Corporate Tax Guide

Hong Kong SAR

Hong Kong SAR applies a territorial tax system. There is no VAT, GST, or sales tax, and capital gains are generally not taxed. Profits tax follows a two-tier regime: corporations are taxed at 8.25% on the first HKD 2 million of assessable profits and 16.5% on the remainder, while unincorporated businesses are taxed at 7.5% and 15% respectively. Resident withholding tax on dividends, interest, and royalties is generally 0/0/0, while non-resident royalties may be subject to withholding at 2.475%-4.95%. OECD 2023 composite effective tax rates are 14.28% (EATR) and 2.01% (EMTR).

Time of Update — 4/02/2026

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Hong Kong SAR

Hong Kong SAR Corporate Tax Brief

PwC World Tax Summary OECD Statistics

Time of Update — 4/02/2026

Corporate Income Tax (CIT)

General CIT Rate:

Corporations: 8.25% on the first HKD 2 million of assessable profits and 16.5% on the remainder; unincorporated businesses: 7.5% on the first HKD 2 million and 15% on the remainder.

CIT Return Due Date:

The tax return forms are typically released on the first working day of April each year. The filing deadline is usually within one month from the day the forms are released. Certain companies (e.g., those with a fiscal year ending on December 31) may have an extended filing deadline, typically until August 15 of the year the forms are released, and in certain circumstances (e.g., electronic filing), extensions may be granted.

CIT Payment Due Date:

For companies with a fiscal year ending on December 31st, the final tax payment for a specific tax year is typically due in November of the year when the tax return is filed.

CIT Estimated Payment Due Date:

For companies with a fiscal year ending on December 31st, interim taxes for a specific tax year will be paid in two installments, typically due in November of the current year and January of the following year.

Withholding Tax (WHT)

Resident Withholding Tax (Dividend/Interest/Royalty):

0/0/0

None-Resident Withholding Tax (Dividend/Interest/Royalty):

0/0/2.475-4.95

Value-Added Tax (VAT)

General VAT Rate:

Learn More

Capital Gain Tax (CGT)

General Capital Gain Tax Rate:

N/A

Effective Tax Rate (ETR)

Composite Effective Average Tax Rate:

14.28

Composite Effective Marginal Tax Rate:

2.01

Additional info

Hong Kong SAR corporate income tax

Hong Kong SAR operates a two-tier profits tax regime. Corporations are taxed at 8.25% on the first HKD 2 million of assessable profits and 16.5% on the remainder. Unincorporated businesses are taxed at 7.5% on the first HKD 2 million and 15% on the remainder. A group of connected entities can nominate only one entity to benefit from the two-tier rates in a year of assessment.

PwC World Tax Summary

Hong Kong SAR Property tax

Property tax:
Property tax is levied annually on the owners of any land or building (other than government and consular properties) in the Hong Kong Special Administrative Region at a rate of 15% of the net assessable value of such land or building. The net assessable value of a property is the consideration paid by the owner for the use of the land or building less the rates paid by the owner and the 20% notional tax allowance.

Corporate rental income derived from Hong Kong properties is subject to profits tax. A corporation subject to profits tax may apply for exemption from payment of property tax in respect of the property. If no exemption is applied, the property tax paid can be used to offset the profits tax payable by the corporation.

PwC World Tax Summary

Value-added tax (VAT)

Hong Kong SAR does not have a VAT, goods and services tax, or sales tax.

PwC World Tax Summary

Stamp duty

Stamp duty is charged on transfers of Hong Kong stock at 0.2% of the consideration or market value per transaction, whichever is higher. For transfers of immovable property, effective from 11 am on 26 February 2025, ad valorem stamp duty applies at progressive rates ranging from HKD 100 to 4.25%, depending on the property value. For leases of immovable property, stamp duty generally ranges from 0.25% to 1% of annual rent depending on the lease term.

PwC World Tax Summary

Government rates and rent

Rates are an indirect tax on Hong Kong properties. They are generally charged at 5% of the rateable value, which is the estimated annual rental value assessed at the reference date of 1 October. For domestic tenements, progressive rates apply at 5% on the first HKD 550,000, 8% on the next HKD 250,000, and 12% on the remainder. Government rent is generally charged at 3% of the rateable value and adjusted in line with later changes in that value.

PwC World Tax Summary