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Hong Kong Corporate Tax Calculator

Hong Kong’s corporate tax rate is 8.25% on the first HK$2 million of assessable profits and 16.5% thereafter. Calculate your exact Hong Kong profits tax liability now in a few clicks.

This calculator uses Hong Kong’s current two-tier profits tax system for corporations.

31 March is the most common year-end for Hong Kong companies.

Please enter a valid amount and a valid date

This calculator should only be used as an estimation tool for general guidance. For a more accurate assessment, speak to a tax professional at Monx. Get a free consultation today

Your estimated Hong Kong profits tax

Incorporated Companies (Limited Companies)
8.25% on the first HK$2,000,000
HK$0
16.5% on the remaining assessible amount
HK$0
Total tax payable
HK$0
Unincorporated Businesses (Sole Proprietors / Partnerships)
7.5% on the first HK$2,000,000
HK$0
15% on the remaining assessible amount
HK$0
Total tax payable
HK$0
Your estimated tax:
Tax filing due date
HK$750

This estimate is based on Hong Kong’s two-tier profits tax regime and does not include special exemptions, carried-forward losses, or offshore considerations.

Want to reduce that number legally?

Monx’s Hong Kong tax team helps founders optimise their structure, apply the two-tier regime correctly, and assess whether any of their profits may qualify as offshore (and potentially exempt).

  • Ensure all eligible deductions are claimed
  • Review whether any income qualifies as offshore
  • Optimise group structures so only one entity uses the 8.25% band
  • Get proactive guidance on Hong Kong tax rules and deadlines
Talk to a Hong Kong tax advisor. Schedule a FREE call here.

Hong Kong Corporate Tax FAQs

No. Hong Kong is not tax-free. Companies are taxed on profits arising in or derived from Hong Kong. However, profits sourced outside Hong Kong are generally not taxable, even if the company is incorporated there.

Hong Kong uses a profits tax system rather than “corporation tax” by name.

For corporations:

  • 8.25% on the first HKD 2 million of assessable profits
  • 16.5% on profits above HKD 2 million

Unincorporated businesses (e.g. sole proprietorships, partnerships) are taxed at:

  • 7.5% on the first HKD 2 million
  • 15% thereafter

The two-tier profits tax regime is designed to support SMEs.

In simple terms:

  • The first HKD 2 million of profits is taxed at a reduced rate
  • Any profits above that threshold are taxed at the standard rate
  • Only one company per group can claim the two-tier benefit

This keeps the effective tax rate low for smaller and growing businesses.

A company may pay zero profits tax if:

  • All profits are offshore-sourced (no Hong Kong operations, decision-making, or value creation)
  • It qualifies for a profits tax exemption and successfully defends its position with the Inland Revenue Department (IRD)
  • It has no assessable profits for the year

Important:

Exemption is not automatic. The IRD reviews facts such as contracts, staff location, management control, and where revenue-generating activities occur.

Hong Kong is not considered a tax haven by international standards.

Why?

  • It has real tax laws, audits, and enforcement
  • It complies with OECD standards, CRS, BEPS, and international information exchange
  • It taxes local profits transparently, rather than offering blanket zero tax

Hong Kong is better described as a low-tax, territorial tax jurisdiction.

Hong Kong keeps taxes low because of its economic model:

  • Territorial taxation – only Hong Kong-sourced profits are taxed
  • No VAT, GST, capital gains tax, or withholding tax on dividends
  • Simple tax code with limited deductions and incentives
  • A policy focus on attracting international trade, finance, and headquarters functions

Low tax is a feature of the system but it comes with substance and compliance expectations.

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