Hong Kong » Taxes

Property Tax	Withholding Tax	Profits Tax	Gift Tax

Property Tax

Property tax is usually charged at 16% on 80% of the rental income derived from any real property in Hong Kong.

Withholding Tax

There are no withholding taxes in Hong Kong as such, but there are certain circumstances in which a company making a payment to a foreign associate (subsidiary or holding company) which is deemed to be Hong Kong source income needs to withhold the tax.

Profits Tax

Profits tax is charged on every person on profits which are derived from Hong Kong from a trade, business and profession carried on by him in Hong Kong. The tax rate is 17.5% (16% for unincorporated businesses).

Gift Tax

Gift tax is levied at a progressive rate. Inter-vivos gifts which are not made for valuable consideration attract stamp duty of up to 2.75% where the gift has a value in excess of US$513,000 whereas no tax is payable if the gift is worth less than US$128,000 or where the recipient is a charitable organisation. Inter-vivos gifts made less than 3 years prior to death may attract estate duty.