Profits Tax

Tax on business profits sourced in Hong Kong.

Only profits arising from Hong Kong are taxable. Two-tiered rates: 8.25% first HK$2M for corporations, 16.5% remainder. 7.5%/15% for unincorporated businesses.

Calculators

Profits Tax Calculator

Estimate your Hong Kong profits tax under the two-tiered rates.

HK Corporate Tax Calculator

Calculate corporate tax for Hong Kong limited companies.

Profit Tax Computation

Detailed breakdown of your Hong Kong profit tax calculation.

Guides

Profits Tax Guide

Understanding source of profits rules and two-tiered tax rates in Hong Kong.

Hong Kong Corporate Tax Guide

Complete guide to corporate tax obligations for Hong Kong businesses.

Deferred Tax Calculation Guide

Understanding deferred tax and temporary differences in Hong Kong.

Provisional Profits Tax Guide

How provisional profits tax is calculated and paid in Hong Kong.

Frequently Asked Questions

What is the profits tax rate in Hong Kong?

Profits tax is charged at two-tiered rates: 8.25% on the first HK$2 million for corporations, and 16.5% on the remainder. For unincorporated businesses, 7.5% and 15% respectively.

Who needs to pay profits tax?

All businesses carrying on a trade, profession, or business in Hong Kong may be subject to profits tax on profits arising in or derived from Hong Kong.

What is the territorial tax system in Hong Kong?

Hong Kong operates a territorial tax system, meaning only profits sourced in Hong Kong are taxable. Overseas profits are generally not subject to Hong Kong profits tax.

How is Hong Kong business tax calculated?

Business tax (profits tax) is calculated on net assessable profits after deducting allowable expenses and capital allowances. The two-tiered rates apply automatically.