Hong Kong Tax Information
KPMG Hong Kong
Government fiscal year starts 1 April. Tax returns are normally filed in May. An assessment notice is sent out by the IRD in the Autumn indicating the sum due. The first payment is usually due in January or February and the second payement due three months later.
Effective 1 April 2000, corporate tax rate is 16% for all Hong Kong sourced profits.
Outgoings incurred in the process of generating assessable profits can be deducted in computing assessable profits. No tax on capital gains tax and no tax on dividends.
A company can adopt any year end date within a calendar year. However, accounts should be made up for a period of 12 months. The first set of audited accounts can be made up to a maximum period of 18 months. There is no requirement for the accounts to be prepared in Hong Kong Dollars.
The reporting currency for the tax return is Hong Kong Dollars. The Inland Revenue Department of Hong Kong publish a monthly exchange rate for all major currencies.
All profits tax return for corporations must be submitted with audited accounts. Otherwise, the tax return will be considered as incomplete.
Individual tax rate is 15% maximum. Tax is levied on Hong Kong sourced employments.
There is no tax on dividends or capital gains; nor is there gift tax.
Inland Revenue Department
5 Gloucester Road
Tel: 187 8088
Fax: (852) 2519 9316
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Last Updated: 17 November, 2004