Hong Kong Tax System
The environment around the law of income tax in hong kong is a bit knotty, yet we have tried our best to provide you with the most relevant and an accurate data here to aid you to start business in hong kong. This is only a general view over the scenario of income tax and some details may not be complete or absent herein. The information quoted here is not authentic and we hold no responsibility regarding the correctness of the data furnished in this article. Both the content creator and the broadcaster are not bounded by the information about hong kong tax system deliberately displayed here. This information is not intended to make any legal decisions, accounting nor tax advice’s. It is recommended to take professional assistance from concerned authorities whilst making any serous decisions in starting business in hong kong. As a remarkable business centre in hong kong tax system, the individual has the sole responsibility to pay his own taxes; hence one must learn how to move on with the income tax systems in hong kong. It is a flat rate of about 15% is paid by most of the expats in hong kong. The basic allowances range from of HK$120,000 for employees who are single and HK$240,000 for employees who are married couples, additionally the Children allowances also apply. Kindly take a glance at Inland Revenue Department for more elaborate information before starting business in hong kong.
For instance, if one can earn HK$700,000 per year would be needed to pay HK$87,000 as a tax, or a flat 12.4%. Progressiveness can be an attribute of hong kong tax, although it doesn’t fit for everyone. This specifies that for those who earn less than HK$40,000 as a monthly salary would be levied at 2% and for some it increases to a lump of 17% who earn more than HK$120,000 per year. This is a justifiable reason to start business in the business centre hong kong.
Demystified Tabular Data for Hong kong Income Tax (Annually)
2% => HK$0 – 40,000
7% => HK$40,001 – 80,000
12% => HK$80,001 – 120,000
17% => HK$120,000+
In need of extended analysis over the business centre hong kong’s tax scenario, visit Inland Revenue Department which would provide you a more analytical view.
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