Tax rates
Hong Kong Profits Tax Rates (2026) — and When the Rate Is 0%
Last updated · Reviewed by the Harbourline Corporate compliance team
| Corporations — first HK$2m | 8.25% |
|---|---|
| Corporations — above HK$2m | 16.5% |
| Unincorporated — first HK$2m | 7.5% |
| Unincorporated — above HK$2m | 15% |
| Offshore-sourced profits | 0% (not assessable) |
| Connected entities | Only one may elect the two-tier rate |
Worked example
| Assessable (Hong Kong-sourced) profit | Tax |
|---|---|
| First HK$2,000,000 × 8.25% | HK$165,000 |
| Next HK$1,000,000 × 16.5% | HK$165,000 |
| Total on HK$3,000,000 | HK$330,000 (11% effective) |
If the same HK$3,000,000 profit is successfully claimed as offshore, Hong Kong Profits Tax is HK$0.
Taxes Hong Kong does not levy
Hong Kong has no VAT/GST, no capital gains tax, no withholding tax on dividends or interest, no tax on dividends from Hong Kong companies, and no estate duty. Stamp duty applies to Hong Kong property and Hong Kong stock transfers.
Global minimum tax (Pillar Two)
From 2025, Hong Kong applies the OECD global minimum tax (15%) to large multinational groups with consolidated annual revenue of at least EUR 750 million. It does not affect small and medium-sized companies or typical owner-managed offshore companies.
Frequently asked questions
What is the corporate tax rate in Hong Kong?
8.25% on the first HK$2 million of assessable profits and 16.5% above that for corporations. Profits sourced outside Hong Kong are not taxed.
Does Hong Kong have VAT?
No. Hong Kong has no VAT, GST or general sales tax.
Official sources
This guide is general information, not tax or legal advice. Hong Kong offshore status is decided by the Inland Revenue Department on the facts of each case, and your country of residence may tax you or the company.