Taxes in Hong Kong in 2026 for foreigners and businesses
No VAT, no tax on dividends or inheritance, and salaries taxed at no more than 15% of income. The price of this simplicity is strict scrutiny of where income comes from: an offshore source has to be proven with documents, and for Russian tax residents a Hong Kong company remains a controlled foreign company (CFC). A full guide to 2026 taxes with worked examples in Hong Kong dollars.
The short answer: in 2026 Hong Kong taxes companies at 8.25% on the first 2 million Hong Kong dollars of profit and 16.5% above that, and salaries on a 2-17% scale capped at 15% of income. There is no VAT and no tax on dividends, capital gains or inheritance. Only Hong Kong-sourced income is taxed, and almost every dispute with the Inland Revenue Department is about the source.
Hong Kong tax rates in 2026 at a glance
Hong Kong taxes only what is earned in Hong Kong, and it has no VAT. A company pays 8.25% on the first 2 million Hong Kong dollars of profit and 16.5% on the rest, an employee hands over no more than 15% of income, and dividends, bank interest and capital gains are not taxed at all.
The tax year (year of assessment) runs from 1 April to 31 March, so rates and allowances are quoted for pairs of years: 2025/26, 2026/27. All amounts here are in Hong Kong dollars (HK$). The currency is pegged to the US dollar within a band of 7.75-7.85 HK$ per dollar, maintained by the Hong Kong Monetary Authority (HKMA). In practice 1 US dollar is about HK$7.8, and HK$100,000 is about 12,800 US dollars.
| Tax | 2026 rate | Who pays and on what |
|---|---|---|
| Corporate profits tax | 8.25% on the first HK$2 million, 16.5% above | Companies, on Hong Kong-sourced profit; only one company in a group of connected entities gets the lower tier |
| Profits tax for sole traders and partnerships | 7.5% on the first HK$2 million, 15% above | Unincorporated businesses; HK$2 million is about 256,000 US dollars |
| Salaries tax | 2-17% progressive, capped at 15% of income (16% on the part above HK$5 million) | Employees and directors, on income from work in Hong Kong, whatever their nationality |
| Mandatory Provident Fund (MPF) contributions | 5% + 5% | Employer and employee, on monthly pay between HK$7,100 and HK$30,000, capped at HK$1,500 a month each |
| Property tax on rental income | 15% | Individual landlords, on rent after a 20% repairs allowance, effectively 12% of rent |
| Rates (local property tax) | 5%, 8% and 12% for expensive homes | The occupier, on the property's estimated annual rental value |
| Stamp duty on property purchases | from HK$100 to 4.25%, 6.5% for homes above HK$100 million | Buyer and seller jointly; the same rates for foreigners and locals |
| VAT | none | Hong Kong has no value added tax and no sales tax |
| Dividends, interest, capital gains | 0% | Not taxed; trading assets as a business is subject to profits tax |
| Inheritance and gift tax | none | Estate duty was abolished for deaths on or after 11 February 2006 |
| Royalties paid abroad | 4.95%, up to 16.5% to a related party | Withheld by the Hong Kong payer |
What changed in 2025-2026
The 2026-27 Budget gave individuals the most noticeable relief in several years. The Inland Revenue Department (IRD) lists the changes; the law on the new allowances and the one-off tax reduction was gazetted on 22 May 2026:
- the basic allowance (the tax-free amount everyone gets) rose from HK$132,000 to HK$145,000 a year from 2026/27, the married person's allowance from HK$264,000 to HK$290,000, and the child allowance from HK$130,000 to HK$140,000;
- salaries tax and profits tax for 2025/26 are cut by 100%, capped at HK$3,000 per taxpayer or business;
- stamp duty on homes above HK$100 million has been 6.5% instead of 4.25% since 26 February 2026;
- the first registration tax break for private electric cars ended on 31 March 2026;
- the Chief Executive's Policy Address of 16 September 2026 proposed raising the allowance for second and subsequent children born on or after 16 September 2026 from HK$140,000 to HK$160,000 (about 20,500 US dollars); this still needs a change in the law;
- since 1 January 2025 multinational groups with revenue of 750 million euros or more pay at least 15% (the global minimum tax).
We will calculate online the tax on your income and show how to pay less legally.
Compare taxes in 146 countries: relocation taxes 2026
Who pays tax in Hong Kong: residency and the 60-day rule
Citizenship, residence permits and even where someone lives decide nothing for Hong Kong salaries tax. What matters is the source of income: Hong Kong taxes only income arising in or derived from Hong Kong. This is called a territorial system, and it is also why foreign dividends and interest on overseas deposits go untaxed.
For employment income the IRD first asks where the job itself is located. If the contract is concluded and enforceable in Hong Kong, the employer is based there and salary is paid there, the whole salary is taxed, business trips included. If the employer and contract are foreign, only the salary for days worked in Hong Kong is taxed.
Short visits do not count. Section 8(1B) of the Inland Revenue Ordinance (Cap. 112) disregards work done in Hong Kong during visits totalling no more than 60 days in a tax year. Arrival and departure days each count, so any overnight trip uses up at least two days of the allowance.
| Situation | What Hong Kong taxes |
|---|---|
| Contract with a Hong Kong company, work in Hong Kong | The whole salary |
| Hong Kong contract, all work abroad, visits to Hong Kong of up to 60 days a year | Nothing |
| Foreign employer, some working days in Hong Kong | Salary for days in Hong Kong; nothing if visits total up to 60 days |
| Remote work for a foreign company from a flat in Hong Kong | Salary for days worked in Hong Kong, which means almost all of it |
| Director of a company managed from Hong Kong | All director's fees; the 60-day rule does not apply |
| Dividends, bank interest, income from abroad | Nothing |
Salary for services rendered abroad on which a tax of a similar nature has already been paid in another country is also excluded from the Hong Kong base.
When residency does matter
Tax residence matters for double tax treaties. An individual is a Hong Kong resident if he or she ordinarily resides in Hong Kong or stays there for more than 180 days in a tax year or more than 300 days in two consecutive tax years. A company is resident if it is incorporated in Hong Kong or managed from Hong Kong. The IRD confirms this status with a Certificate of Resident Status, and treaty rates are not applied without one.
The main trap for anyone moving from Russia: Hong Kong's 180 days do not cancel Russia's 183. As long as 183 days in Russia add up within 12 consecutive months, worldwide income is taxed there and Hong Kong tax is credited under the treaty. How to count the days is explained in our article on tax residency and the 183-day rule.
Hong Kong tax residency: how to get a certificate and count the days
Hong Kong taxes only local income, so residency here matters not for the tax but for the certificate that banks and double tax agreements require. You are resident if you ordinarily live in Hong Kong, or stayed more than 180 days in the tax year from 1 April, or more than 300 days over two years in a row.
Salaries tax depends on where the job is, not on the status. The residency certificate is issued by the Inland Revenue Department.
The law does not stop you from confirming the status on your own. But mistakes cost more: the certificate application is rejected if days and residence are not proven. Murblz support removes these risks: we count days by tax year, gather the evidence and obtain the certificate. We guarantee professional work and a transparent process, and in most cases a result on the first filing.
183-day calculator
Tax residency calculator for Hong Kong
Enter your travel dates: the calculator shows whether you are a tax resident of Hong Kong today and at year end, and how many days are left before the threshold.
Counting by dates needs JavaScript. Below are the same rules by country.
What is the income tax rate in Hong Kong and how much of a salary is left
On a salary of HK$50,000 a month (about 6,400 US dollars) a single employee pays around 9.4% of income in 2026/27, less than the 13% basic rate of Russian personal income tax. The trick is that Hong Kong salaries tax is calculated two ways and the lower result wins.
The first way is the progressive scale. Deductions allowed by law are taken off annual income, then personal allowances, and the rest is taxed in bands:
| Net chargeable income for the year | Rate | Cumulative tax |
|---|---|---|
| First HK$50,000 | 2% | HK$1,000 |
| Next HK$50,000 | 6% | HK$4,000 |
| Next HK$50,000 | 10% | HK$9,000 |
| Next HK$50,000 | 14% | HK$16,000 |
| Everything above HK$200,000 | 17% | - |
The second way is the standard rate: 15% of income after deductions but before allowances, and since 2024/25 16% on the part above HK$5 million. The IRD compares both results itself and charges the lower one. In 2026/27 a single employee reaches the standard rate at annual income of about HK$2,132,500 (about 273,000 US dollars); below that the scale is cheaper.
Allowances and deductions
| Allowance or deduction | 2025/26 | From 2026/27 |
|---|---|---|
| Basic allowance | HK$132,000 | HK$145,000 |
| Married person's allowance, if the spouse has no taxable income or the couple is assessed jointly | HK$264,000 | HK$290,000 |
| Per child | HK$130,000 | HK$140,000, doubled in the child's first two years |
| Employee MPF contributions | up to HK$18,000 | up to HK$18,000 |
| Domestic rent or home loan interest | up to HK$100,000, up to HK$120,000 with a child | the same |
| Self-education | up to HK$100,000 | up to HK$100,000 |
The higher HK$120,000 cap on rent or mortgage interest applies to taxpayers living in Hong Kong with a child born on or after 25 October 2023.
Worked example: HK$600,000 a year, 2026/27
| Step | Amount |
|---|---|
| Annual salary, HK$50,000 a month | HK$600,000 |
| Employee MPF contribution, 5% capped at HK$1,500 a month | HK$18,000 |
| Income after deductions | HK$582,000 |
| Basic allowance | HK$145,000 |
| Net chargeable income | HK$437,000 |
| Tax on the scale: 16,000 + 17% of 237,000 | HK$56,290 |
| Tax at the standard rate: 15% of 582,000 | HK$87,300 |
| Payable (the lower amount) | HK$56,290 |
| Take-home after tax and MPF | HK$525,710, about HK$43,800 a month |
| Employer MPF contribution on top of salary | HK$18,000 |
Tax takes 9.4% of the salary. For 2025/26 the same salary would have produced HK$58,500 of tax under the old HK$132,000 allowance, and HK$55,500 after the one-off HK$3,000 reduction. At HK$3 million a year (about 385,000 US dollars) the scale no longer helps: tax at the 15% standard rate is HK$447,300, or 14.9%.
One feature surprises newcomers. Employers do not deduct tax from monthly pay: the IRD sends a bill based on the annual return and adds provisional tax straight away (an advance for the current year based on last year's income). So in the second year in Hong Kong a double bill arrives: final tax for year one plus the advance for year two.
Leaving works the other way round. If an employee is leaving Hong Kong for more than a month, the employer must notify the IRD at least a month in advance (form IR56G) and hold back payments until the tax is settled.
MPF contributions: not a tax, but compulsory
Hong Kong has no social taxes in the Russian sense. Their place is taken by the Mandatory Provident Fund (MPF): the money goes not to the budget but to the employee's own account in a private pension scheme, and belongs to the employee immediately.
| Monthly pay | Employer | Employee |
|---|---|---|
| Below HK$7,100 | 5% | 0 |
| HK$7,100 to HK$30,000 | 5% | 5% |
| Above HK$30,000 | HK$1,500 | HK$1,500 |
Employees and the self-employed aged 18 to 64 contribute; the self-employed pay 5% of income within the same limits. A new employee skips his or her own share for the first 30 days. Exempt are foreigners who come on a work visa for no more than 13 months and members of another country's pension scheme. Since 1 May 2025 employers can no longer offset their MPF contributions against severance or long service payments. For comparison, the basic Russian employer contribution rate is 30% up to the contribution ceiling, while a Hong Kong employer pays no more than HK$1,500 a month per employee.
Hong Kong corporate tax rate and tax on dividends
A company with HK$3 million of profit (about 385,000 US dollars) pays HK$330,000 in Hong Kong, or 11%. For comparison, Russia's profits tax has been 25% since 2025, and neighbouring Singapore charges 17%.
Profits tax has two tiers. The first HK$2 million is taxed at a half rate of 8.25%, the rest at 16.5%. For sole traders and partnerships the rates are 7.5% and 15%. Only one company in a group of connected entities can use the lower tier, so splitting a business into a dozen companies for the relief does not work.
| Worked example: profit of HK$3,000,000 | Amount |
|---|---|
| First HK$2,000,000 at 8.25% | HK$165,000 |
| Remaining HK$1,000,000 at 16.5% | HK$165,000 |
| Total tax | HK$330,000, 11% of profit |
| One-off reduction for 2025/26 | minus up to HK$3,000 |
The key word is source
Only profit arising in or derived from Hong Kong is taxed. A trading company that negotiates, signs and performs its contracts outside Hong Kong can lawfully pay no tax at all. But this is not an automatic break: the company files an offshore claim and has to prove it with documents showing where staff worked, who signed the contracts and where the goods came from. The IRD can raise an additional assessment within 6 years after the end of the tax year.
The foreign-sourced income exemption regime (FSIE)
The Foreign-sourced Income Exemption (FSIE) regime has applied since 1 January 2023 and was widened on 1 January 2024. It covers companies that belong to a multinational group, meaning they have related companies or branches outside Hong Kong. Foreign dividends, interest, income from intellectual property and gains on the sale of any asset are treated as Hong Kong-sourced and taxed at the normal rate if the money is received in Hong Kong.
There is no tax if the company meets one of the conditions: it keeps enough staff and premises in Hong Kong to manage those assets (economic substance), it has held at least 5% of the subsidiary for at least 12 months and the profit abroad was taxed at 15% or more (participation exemption), or, for intellectual property income, it did the research itself. A company with no people and no office that routes foreign dividends through a Hong Kong account risks paying 16.5%.
Dividends and the minimum tax for large groups
Dividends are not taxed in Hong Kong, neither for the company that pays them nor for the shareholder, resident or foreign. There is no withholding tax on dividends or interest either.
Since 1 January 2025, multinational groups with revenue of 750 million euros or more in at least two of the four preceding years pay no less than 15%: the minimum tax law for such groups was gazetted on 6 June 2025.
Every business in Hong Kong registers with the IRD (business registration) and pays an annual fee of HK$2,200. From 1 April 2026 it again includes a HK$150 levy for the fund that protects wages when an employer goes insolvent, which had been waived since April 2024. Every active company must also have its accounts audited each year. Murblz specialists take care of both: company registration in Hong Kong and audit and accounts in Hong Kong.
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Does Hong Kong have VAT
No. Hong Kong has no value added tax (VAT, more often called GST, goods and services tax, in Asia) and no sales tax, so there are no registration thresholds, quarterly returns or refunds. The government proposed a goods and services tax in 2006 but dropped the idea after public consultation.
For comparison, Singapore charges 9% GST, the UAE 5% VAT, and Russia 22% from 2026.
What is charged instead of VAT
| Charge | Rate | On what |
|---|---|---|
| Duty on spirits | 100% of the import price up to HK$200 a bottle, 10% on the part above HK$200 | Drinks above 30% alcohol; the lower rate for expensive bottles has applied since 16 October 2024 |
| Wine, beer and lighter drinks | 0% | Duty abolished in 2008 |
| Duties on tobacco, fuel and methyl alcohol | fixed amounts | Per unit of goods |
| Hotel accommodation tax | 3% | On the room rate, charged since 1 January 2025 |
| Stamp duty | from HK$100 to 6.5% | Property and share transactions |
| First registration tax on cars | 46-132% | Value of a new car |
Having no VAT in Hong Kong does not exempt anyone from VAT in the buyer's country. A Hong Kong company selling online services or goods to private customers in the European Union, the UK or Russia pays VAT under those countries' rules.
For wholesale trade the absence of VAT is a direct advantage. Hong Kong is also a free port: there are no customs duties on imports apart from the dutiable goods in the table above. So goods can be bought, repacked and resold through Hong Kong without tying up cash in tax. That is why trading companies dealing with mainland China and South-East Asia are registered here, and it makes sense to open a settlement account straight away: business bank account in Hong Kong.
Tax breaks for small businesses, sole traders, freelancers, IT and family offices
Hong Kong has no simplified tax, no flat licence fee and no special regime for digital nomads, and small businesses hardly need one: the first HK$2 million of profit is already taxed at 8.25%, or 7.5% for sole traders. Its tax breaks are targeted and built for businesses with real activity in Hong Kong: research, patents, managing family wealth, leasing.
| Regime | Rate | Who it is for |
|---|---|---|
| Two-tier profits tax | 8.25% and 16.5%, sole traders 7.5% and 15% | Any business; the lower tier goes to one company per group |
| Personal assessment | 2-17% scale | Sole traders and landlords living in Hong Kong: income is combined and personal allowances apply |
| Enhanced deduction for research and development | 300% on the first HK$2 million of spending, 200% above | Companies doing their own research or commissioning it from approved institutions |
| Patent box | 5% | Income from patents and other protected rights created through the company's own research |
| Family-owned investment holding vehicles (FIHV) | 0% | Family investment structures with assets of at least HK$240 million (about 31 million US dollars) managed by a single family office in Hong Kong |
| Ship and aircraft leasing | 0% and 8.25% | Leasing companies meeting the statutory conditions |
Sole traders and freelancers
A freelancer who lives in Hong Kong and works for himself or herself registers a business with the IRD and pays profits tax as a sole trader: 7.5% on the first HK$2 million of profit. On modest income personal assessment is cheaper: the HK$145,000 basic allowance and the progressive scale are applied to the profit, and the tax comes out lower.
IT, expats and remote workers
There is no special tax regime for IT companies. Their real tools are the 300% research deduction and the 5% patent box, but both require development done in Hong Kong, not rights bought from someone else.
Expats get nothing special either: a foreign professional pays the same salaries tax as a local, and relief comes only from the 60-day rule and double tax treaties. Talent visas such as the Top Talent Pass Scheme (a visa programme for high earners and graduates of top universities) open the door to living and working in Hong Kong but carry no tax breaks. A remote employee of a foreign company living in Hong Kong pays tax on salary for the days worked in Hong Kong.
Family offices: the 2026 bill
The zero rate for family investment vehicles has applied since 2022/23. On 12 June 2026 the government published a bill that extends it to loans, digital assets, precious metals, commodities, carbon credits and overseas real estate. If the Legislative Council (Hong Kong's legislature) passes it, the new rules will apply retrospectively from 2025/26. For structures of this size Murblz specialists look at the options together with company registration and investment property in Hong Kong.
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Property, car, inheritance, capital gains and crypto taxes in Hong Kong
In 2026 a foreigner buys a flat in Hong Kong at the same stamp duty rates as a local. The extra duties on buyers who are not permanent residents and on quick resales were scrapped on 28 February 2024, as home prices fell.
Stamp duty on purchases
Stamp duty is charged on the price or the market value, whichever is higher. The rate depends on the band and applies to the whole amount, with a marginal relief formula at the edges of each band.
| Property price | Duty |
|---|---|
| Up to HK$4 million | HK$100 |
| Up to HK$4.5 million | 1.5% |
| Up to HK$6 million | 2.25% |
| Up to HK$9 million | 3% |
| Up to HK$20 million | 3.75% |
| Up to HK$100 million | 4.25% |
| Homes above HK$100 million | 6.5% since 26 February 2026 (non-residential property 4.25%) |
Worked example: a flat for HK$8 million (about 1 million US dollars) costs HK$240,000 in stamp duty, 3%.
Owning and letting
Every property pays rates, a local tax of 5% a year of the estimated annual rental value set by the Rating and Valuation Department. Since 2025 homes valued above HK$550,000 a year pay progressive rates: 5% on the first HK$550,000, 8% on the next HK$250,000 and 12% on the rest. On most land an additional government rent of 3% of the same value is due.
An individual landlord pays property tax of 15%. Rates paid by the owner and a flat 20% repairs allowance, with no receipts needed, are taken off the rent. Worked example: rent of HK$20,000 a month, HK$240,000 a year, a taxable base of HK$192,000 and tax of HK$28,800. If the flat is owned by a company, the rent falls under profits tax instead, but loan interest and expenses can be deducted.
Sales, inheritance, shares and crypto
Hong Kong has no separate capital gains tax. Selling a flat, shares or a stake in a company is not taxed if it was an investment rather than trading. If the IRD sees trading, such as frequent deals, short holding periods or buying on credit to resell, the profit is charged to profits tax at 16.5% or 15%. Trades in Hong Kong shares carry stamp duty of 0.1% on each side, a rate in force since 17 November 2023.
There has been no estate duty since 11 February 2006, and there has never been a gift tax. For cryptocurrency the IRD applies the same rules as for any asset (Departmental Interpretation and Practice Notes No. 39, DIPN 39): gains on a long-term investment are not taxed, profits from trading as a business are subject to profits tax.
Car tax
A car in Hong Kong is an expensive pleasure. On first registration a private car pays first registration tax on its taxable value: 46% on the first HK$150,000, 86% on the next HK$150,000, 115% on the next HK$200,000 and 132% on the rest. Worked example: a car worth HK$400,000 pays HK$313,000 in tax, almost 80% of its price. The break for private electric cars was not extended: applications filed from 1 April 2026 no longer get it, except for cars ordered on or before 25 February 2026 whose registration is applied for by 24 February 2027.
What taxes do non-residents pay and what is withheld at source
Hong Kong withholds almost nothing on payments abroad: dividends and interest go to foreign recipients tax-free, and royalties are taxed at 4.95%. Compared with Russia, where 15% is withheld from dividends paid to a foreign company as a general rule, this is one of the mildest systems in the world.
| Payment to a non-resident | Hong Kong withholding | How it is calculated |
|---|---|---|
| Dividends | 0% | No withholding tax |
| Interest | 0% | No withholding tax |
| Royalties to a company for rights used in Hong Kong | 4.95% | 30% of the payment is deemed profit and taxed at 16.5% |
| Royalties to an individual or partnership | 4.5% | 30% of the payment at 15% |
| Royalties to a related party where the rights were previously owned by a Hong Kong person | 16.5% | The whole payment is taxed |
| Salary for work in Hong Kong | 2-17% scale or 15% | Annual return; visits of up to 60 days are not taxed |
A foreign company doing business in Hong Kong
A foreign company that does business in Hong Kong through an office, staff or an agent with authority to conclude deals pays profits tax on the Hong Kong part of its profit at the same 8.25% and 16.5%.
Non-resident individuals
Residence is irrelevant for salaries tax, so a non-resident gets the same allowances as a local, including the HK$145,000 basic allowance. The only thing out of reach is personal assessment, which combines business, rental and employment income.
A non-resident who lets a flat in Hong Kong pays 15% property tax like a local owner, and the same stamp duty on purchase. There is no tax on taking money out of Hong Kong, on currency exchange or on capital gains from a sale. Murblz specialists help open an account for rent or dividends: personal bank account in Hong Kong.
Does Hong Kong have a double tax treaty with Russia
Yes, and the treaty between Russia and Hong Kong works in full. Russian presidential decree No. 585 of 8 August 2023 suspended the key articles of tax treaties with 38 countries, including neighbouring Singapore, but Hong Kong is not on that list.
The treaty was signed on 18 January 2016 and entered into force on 29 July 2016. Russia applies it from 1 January 2017, Hong Kong from the 2017/18 tax year, that is from 1 April 2017. After 2022 it was supplemented by the anti-abuse rules of the OECD Multilateral Convention (MLI): no benefit is granted if the main purpose of an arrangement is to reduce tax.
| Income | Maximum rate in the source country | What it means in practice |
|---|---|---|
| Dividends to a company directly holding at least 15% of the capital | 5% | A Russian company paying dividends to a Hong Kong parent: 5% instead of 15% |
| Other dividends | 10% | Instead of 15% under Russian law |
| Interest | 0% | Taxed only in the recipient's country |
| Royalties | 3% | Hong Kong withholds 3% instead of 4.95%, Russia 3% instead of 20% |
For a Russian withholding agent to apply the lower rate, the recipient hands over a Hong Kong tax residence certificate in advance and confirms that it is the beneficial owner of the income. Companies with no staff and no real management in Hong Kong find this hard to prove.
CFC rules: a Hong Kong company owned by a Russian tax resident
The treaty does not override Russia's controlled foreign company (CFC) rules. If the owner of a Hong Kong company remains a Russian tax resident and holds more than 25% (in some cases more than 10%), he or she notifies the Russian tax service of the stake and the company, and CFC profit above 10 million roubles a year is taxed in Russia. The exemption based on the effective rate usually does not work: since 2025 Russia's profits tax is 25%, the threshold is 75% of that, 18.75%, while Hong Kong's top rate is 16.5%. Murblz specialists prepare CFC notifications and reporting: CFC notifications and reporting.
Hong Kong's other treaties
According to the IRD, Hong Kong has concluded 59 comprehensive double tax agreements, 50 of which are in force, including those with mainland China, the UK, France, Japan, the UAE, Belarus, Armenia, Georgia and Latvia. Nine more have been signed but are not yet in force, among them Kyrgyzstan (2 March 2026), Cyprus (12 June 2026) and Slovenia (4 September 2026).
Hong Kong has no treaty with the US, Germany, Singapore, Kazakhstan or Ukraine. For income from those countries only domestic rules apply: Hong Kong's territorial system plus tax in the source country.
Hong Kong tax filing deadlines and penalties
The Hong Kong IRD sends out tax returns itself and expects them back within a month, and silence does not help: without a return the IRD issues an estimated assessment and may start penalty proceedings. Companies with no turnover must file too if they receive a return.
| What | When |
|---|---|
| Tax year | 1 April to 31 March |
| Individual tax return (BIR60) | Issued in early May, due in one month, one extra month for online filing |
| Employer's return of salaries (BIR56A with IR56B forms) | Issued in early April, due in one month |
| Profits tax return (BIR51) | Issued in early April, due in one month |
| Extension for returns filed through a tax representative | Year ending 1 April to 30 November: no extension; 31 December: mid-August; 1 January to 31 March: mid-November (for 2025/26, 16 November 2026) |
| First return of a new company | Arrives about 18 months after incorporation, due in 3 months |
| Tax payment | On the dates in the notice, usually in two instalments: winter and spring |
| Record keeping | At least 7 years |
From 2025/26, multinational groups with revenue of 750 million euros or more must file their profits tax returns electronically.
Penalties
| Breach | Consequence |
|---|---|
| Return not filed or filed late | Estimated assessment, a court fine of up to HK$10,000 plus up to three times the tax undercharged |
| Understating income without reasonable excuse | Additional tax of up to three times the tax undercharged (section 82A) |
| Tax not paid on time | A 5% surcharge, and a further 10% six months later |
| Wilful evasion | Criminal prosecution, fine and imprisonment |
The IRD can raise an additional assessment within 6 years after the end of the tax year, and longer in cases of wilful evasion. Taxpayers who persistently file late are almost certain to face penalty action, as the IRD itself warns in its annual letters to tax representatives. Murblz specialists handle deadlines and reporting from start to finish together with locally licensed partners.
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What Hong Kong's tax system means for a move
Hong Kong remains one of the few major financial centres where salaries are taxed at no more than 15-16%, there is no VAT and the tax treaty with Russia still works. But the low rates reward those who actually live and do business in Hong Kong, not those who only keep an account there.
| Tax | Hong Kong | Singapore | UAE | Russia |
|---|---|---|---|---|
| Profits tax | 8.25% and 16.5% | 17% | 0% up to AED 375,000 (about 102,000 US dollars), 9% above | 25% |
| Top tax on salary | 15-16% in practice | 24% | 0% | 22% |
| VAT | none | 9% | 5% | 22% |
| Dividends for individuals | 0% | 0% | 0% | 13-15% |
| Treaty with Russia | in force | articles suspended since 2023 | new, from 2026 | - |
More on the neighbours in our guides to taxes in Singapore and taxes in the UAE.
Who Hong Kong suits
Well-paid professionals who genuinely relocate. Salaries tax does not exceed 15% of income up to HK$5 million a year, and dividends and investment income are not taxed.
Trading and holding companies with a real office. Profit from outside Hong Kong can lawfully go untaxed, and dividends can be paid out without withholding tax. The condition is staff, decisions and paperwork.
Investors. There is no tax on capital gains, inheritance or dividends, and buying a home costs foreigners the same as locals. Residence options for investors are collected on the Hong Kong residence permit page, and all programmes are in the Hong Kong section.
Who Hong Kong does not suit
Russian tax residents. As long as 183 days in Russia add up, all income is taxed there and a Hong Kong company becomes a CFC. Savings appear only after tax residence changes.
Anyone looking for a zero-tax offshore shell. The FSIE regime, scrutiny of offshore claims, mandatory audits and strict bank due diligence make an empty company expensive and risky.
Those whose clients and income are in the US, Germany or Kazakhstan. Hong Kong has no treaties with these countries, so withholding tax there cannot be reduced under a treaty.
Related pages: company registration abroad, business account in Hong Kong and taxes by country. If a dispute with the IRD goes to court, Murblz specialists handle the defence: legal support.
The exact tax burden depends on where income arises, how many days a year are spent in Hong Kong and what status is kept in Russia. Murblz specialists will review the situation in a free consultation.
FAQ
What taxes do you pay in Hong Kong?
Does Hong Kong have VAT?
What is the corporate tax rate in Hong Kong?
What is the income tax rate in Hong Kong for foreigners?
Are dividends and capital gains taxed in Hong Kong?
Is the double tax treaty between Russia and Hong Kong still in force?
Do you pay tax in Hong Kong if the company earns abroad?
When is the Hong Kong tax return due?
Services
Murblz services in Hong Kong
The tax rate is only half the picture. The other half is where the company sits, where the money is held and who files the accounts. Murblz specialists help with that in the same country. The quote is fixed in writing before work starts.
See also
Related programs and destinations
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Hong Kong or Singapore for the company?
The finder compares Hong Kong, Singapore and 12 more options on tax, banking and budget. The first-year price comes from the Murblz price list.
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