Profits Tax Calculator

Use this Hong Kong profits tax calculator to estimate your business tax liability:

1. Enter your assessable profits after allowable business expenses.
2. Select your business type: incorporated (limited company) or unincorporated (sole proprietor/partnership).
3. Choose the relevant year of assessment.
4. Click Calculate to see your profits tax under the two-tiered rates system.

This HK profits tax calculator supports both corporations and unincorporated businesses. Use our Profits Tax guide for more information.

Assessable Profits: Net profits after deducting allowable business expenses.
Business Type: Incorporated (limited company) or unincorporated (sole proprietor/partnership).
Profits Tax: Computed at the two-tiered rates: 8.25% on first HK$2 million for corporations (7.5% for unincorporated), and 16.5% (15% for unincorporated) on the remainder.
Effective Rate: Your total tax as a percentage of assessable profits.
Take-Home Profit: Profit after profits tax. Use our HK profit tax calculator to plan your business finances.

Profits Tax = Assessable Profits x Applicable Rate

The two-tiered profits tax rates apply automatically:

• Corporations: 8.25% on the first HK$2,000,000 of assessable profits; 16.5% on any profits above that amount.
• Unincorporated businesses: 7.5% on the first HK$2,000,000; 15% on the remainder.

Only one entity within a group of connected entities can benefit from the two-tiered rates. Use our Hong Kong corporate tax calculator for accurate estimates.

Example: with an annual income of $50,000, the estimated tax would be calculated using the applicable rates. Use the calculator above for your specific situation.

• Instant tax estimates
• Up-to-date rates
• Easy to use
• Helps with financial planning

• This is an estimate only
• Does not cover all deductions or credits
• Tax laws change frequently
• Consult a professional for complex situations

Hong Kong operates a territorial tax system. Only profits arising in or derived from Hong Kong are subject to profits tax. The two-tiered profits tax rates are:

For Corporations (Limited Companies)

For Unincorporated Businesses

Use our Hong Kong profits tax calculator to compute your exact tax.

• Including foreign-sourced profits that should be excluded under the territorial system.
• Failing to claim allowable business expenses such as rent, salaries, and depreciation.
• Not maintaining proper books and records for at least 7 years.
• Missing filing deadlines for Profits Tax Returns (BIR51 or BIR52).
• Assuming connected entities can all use the two-tiered rates - only one entity in a group can claim the reduced rate.
• Not lodging connected entity elections with IRD when required.

Use our Hong Kong corporate tax calculator to ensure accurate estimates.

• IRD Hong Kong eTAX Portal
• IRD Profits Tax Information
• GovHK Business Services