Key takeaways
- Hong Kong taxes income on a territorial basis: salaries tax and profits tax depend on where services are rendered or profits arise, not on whether you are a tax resident.
- For treaty purposes and to obtain a certificate of resident status, the Inland Revenue Department treats an individual as resident if they ordinarily reside in Hong Kong, stay more than 180 days in a year of assessment, or more than 300 days over two consecutive years of assessment.
- In 2025/26 salaries tax is the lower of progressive rates from 2% to 17% on net chargeable income, or a standard rate of 15% on the first HKD 5 million of net income and 16% above.
Last reviewed: October 2026
Key figures
| Item | Figure |
|---|---|
| Tax year (year of assessment) | 1 April - 31 March |
| Treaty-residence day tests | > 180 days in a year of assessment, or > 300 days over 2 consecutive years |
| Salaries tax, progressive | 2% / 6% / 10% / 14% on HKD 50,000 bands, then 17% (2025/26) |
| Salaries tax, standard rate cap | 15% on first HKD 5m net income, 16% above |
| Profits tax, unincorporated business | 7.5% on first HKD 2m, 15% above |
| Profits tax, corporations | 8.25% on first HKD 2m, 16.5% above |
| 60-day rule | Visits of 60 days or less disregarded for non-Hong Kong employment |
Does tax residency matter in Hong Kong?
Less than almost anywhere else. Hong Kong applies a territorial basis of taxation: PwC's 2026 summary notes that "residence, domicile or citizenship is not relevant" to salaries tax liability under domestic law. What counts is:
- Salaries tax: income from employment, office or pension arising in or derived from Hong Kong. For a non-Hong Kong employment, only income for services rendered in Hong Kong is taxed.
- Profits tax: profits arising in or derived from Hong Kong from a business carried on there.
- No tax on capital gains, dividends or bank interest received by individuals, and no tax on foreign-source income.
Tax residency still matters for three reasons:
- Treaty access. To claim reduced withholding or tie-breaker protection under one of Hong Kong's Comprehensive Double Taxation Agreements (CDTAs), you need a certificate of resident status.
- Leaving your previous country. Your former country will want proof that you are resident elsewhere.
- Substance for your company. A Hong Kong company run from abroad may be taxed where it is actually managed.
Who is a Hong Kong tax resident?
The Inland Revenue Department (IRD) treats an individual as a Hong Kong resident for treaty purposes if they meet any one of these tests:
- they ordinarily reside in Hong Kong (a habitual, settled home and life there);
- they stay in Hong Kong for more than 180 days during a year of assessment (1 April to 31 March); or
- they stay more than 300 days in two consecutive years of assessment, one of which is the year concerned.
Each treaty has its own residence article and protocol, so check the CDTA with your other country. If you are also resident there under its law, the treaty tie-breaker applies: permanent home, then centre of vital interests, habitual abode and nationality.
Do not confuse residence with the treaty's 183-day employment rule. Most CDTAs say employment income is taxable only in the residence state if you are present in the other state no more than 183 days in a 12-month period and your employer is not resident there. That rule decides who taxes a salary, not where you live.
How do you get a Hong Kong certificate of resident status?
- Check you meet a test (ordinarily resides, 180 days or 300 days) for the year of assessment you need.
- Use the right form: IR1313A for the Mainland China arrangement, IR1313B for other treaty partners.
- Apply online through the Individual Tax Portal under eTAX on GovHK, or by post to the Assessor (Tax Treaty), Tax Treaty Section, Inland Revenue Centre, Kai Tak.
- Wait about 21 working days, IRD's target for a decision on a complete application.
- Receive the certificate: a digital certificate in your portal inbox for the Mainland (covering the year applied for and the next two calendar years), or a paper certificate by post for other jurisdictions.
How much tax do Hong Kong residents pay?
Salaries tax for 2025/26 is the lower of two calculations:
| Net chargeable income (HKD) | Progressive rate |
|---|---|
| 0 - 50,000 | 2% |
| 50,001 - 100,000 | 6% |
| 100,001 - 150,000 | 10% |
| 150,001 - 200,000 | 14% |
| Above 200,000 | 17% |
or the standard rate: 15% on the first HKD 5 million of net income (before personal allowances) and 16% above.
Example. An engineer employed by a Hong Kong company earns HKD 600,000. After the basic allowance of HKD 132,000, net chargeable income is HKD 468,000. Progressive tax is HKD 16,000 on the first 200,000 plus 17% of 268,000 (HKD 45,560), so HKD 61,560, about 10.3% of salary. The standard-rate calculation (15% of 600,000 = HKD 90,000) is higher, so the progressive figure applies.
Self-employed professionals pay profits tax at 7.5% on the first HKD 2 million of assessable profits and 15% above. Hong Kong companies pay 8.25% and 16.5%; only one entity in a connected group can use the lower tier. Since 2023, the foreign-sourced income exemption (FSIE) regime taxes certain offshore passive income received in Hong Kong by multinational group entities unless substance conditions are met. See our guides to corporate income tax in Hong Kong and deductible business expenses.
How do you move to Hong Kong, step by step?
- Get the right immigration status. Options include an employment visa (General Employment Policy), the Top Talent Pass Scheme for high earners (annual income of HKD 2.5 million or more) and graduates of listed universities, the Quality Migrant Admission Scheme, investment-as-entrepreneur visas or a dependant visa.
- Register for an HKID card if you stay more than 180 days.
- Rent a home and keep the lease: it supports "ordinarily resides" and is needed for a certificate.
- Get on the IRD's books. Your employer notifies IRD when you start; if self-employed, register your business with the Business Registration Office.
- File your return. Individual returns are issued on the first working day of May, with one month to file (two months via a tax representative). Tax is usually paid in January and April through provisional tax.
- Track your days across the April-March year if you need a certificate.
When you leave, your employer must notify IRD and withhold payments when an employee leaves Hong Kong for more than one month. Our guide to ceasing Hong Kong tax residency covers the departure steps.
Hong Kong residency for location-independent professionals
- 60-day rule. If your employment is not a Hong Kong employment (contract, employer and payment outside Hong Kong) and your visits total 60 days or less in the basis period, your salary is not taxed in Hong Kong at all. Above that, only income for days worked in Hong Kong is taxed.
- Remote work for foreign clients. A freelancer living in Hong Kong who serves overseas clients can argue some profits are offshore, but the IRD looks at where the operations generating the profit are performed. Work done at your desk in Hong Kong is generally Hong Kong-sourced.
- Home-country exposure. Low Hong Kong tax does not end your old country's claim. Many countries tax citizens or former residents unless you prove residence elsewhere, which is why the certificate matters.
- Treaty network. Hong Kong's CDTA network is narrower than that of the US or EU states; check Hong Kong's tax treaties for your counterpart country.
Frequently asked questions
Who is considered a tax resident in Hong Kong?
For treaty purposes, the Inland Revenue Department treats an individual as resident if they ordinarily reside in Hong Kong, stay more than 180 days in a year of assessment (1 April to 31 March), or more than 300 days in two consecutive years of assessment. Under domestic law, residence does not determine salaries or profits tax, which follow the source of income.
What is the Hong Kong income tax rate?
For 2025/26, salaries tax is the lower of progressive rates of 2%, 6%, 10% and 14% on successive HKD 50,000 bands and 17% above HKD 200,000 of net chargeable income, or a standard rate of 15% on the first HKD 5 million of net income and 16% above. Unincorporated businesses pay 7.5% on the first HKD 2 million of profits and 15% above.
How do I get a tax residency certificate in Hong Kong?
Apply to the Inland Revenue Department for a certificate of resident status, online through the Individual Tax Portal (eTAX on GovHK) or by post to the Tax Treaty Section. You must ordinarily reside in Hong Kong or exceed the 180-day or 300-day tests. IRD aims to decide within 21 working days of a complete application.
Do expats pay tax on foreign income in Hong Kong?
No. Hong Kong's territorial system taxes only income arising in or derived from Hong Kong. Foreign-source employment income for services rendered abroad, foreign investment income, capital gains and dividends are not taxed, whatever your residence. Under the 60-day rule, visits of 60 days or less for a non-Hong Kong employment are disregarded entirely.
Is there capital gains tax in Hong Kong?
No. Hong Kong does not tax capital gains or dividends received by individuals. Gains can be taxed as profits only if the activity amounts to a trade carried on in Hong Kong, for example frequent trading of property or securities as a business. Multinational group entities may also be taxed on certain offshore disposal gains under the FSIE regime.
Related guides
Sources
- IRD - Certificate of resident status (DTA)
- PwC Worldwide Tax Summaries - Hong Kong SAR, individual residence
- PwC Worldwide Tax Summaries - Hong Kong SAR, taxes on personal income
- PwC Worldwide Tax Summaries - Hong Kong SAR, tax administration
- PwC Worldwide Tax Summaries - Hong Kong SAR, corporate income tax
This article is general information, not personalised tax advice. Rules change and depend on your facts; check with a qualified adviser before acting.
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