Tax rates summary

 

Profits tax

Tax rates 2017/2018 2016/2017
Companies 16.5%  16.5%
Unincorporated businesses 15%  15% 

 

Property tax

Tax rates 2017/2018 2016/2017
Tax rate 15% 15%

 

Salaries tax

Tax rates 2017/2018 Tax rates 2016/2017
First $45,000 at 2% First $40,000 at 2%
First $45,000 at 7% First $40,000 at 7%
First $45,000 at 12% First $40,000 at 12%
On the remainder at 17% On the remainder at 17%
Standard rate 15% Standard rate 15%
     
Personal allowances 2017/2018 2016/2017
Basic allowance HK$132,000 HK$132,000
Married person's allowance HK$264,000 HK$264,000
Child allowance    
 1st to 9th child (each)    
 > Year of Birth HK$200,000 HK$200,000
 > Other years HK$100,000 HK$100,000
Dependent parent /  grandparent allowance    
 Aged 60 or above    
 > not residing with taxpayer HK$46,000 HK$46,000
 > residing with taxpayer throughout the year HK$92,000 HK$92,000
 Aged 55 to 59    
 > not residing with taxpayer HK$23,000 HK$23,000
 > residing with taxpayer throughout the year HK$46,000 HK$46,000
     
Dependent brother / sister allowance (for whom no child allowance is claimed) HK$37,500 HK$33,000
Single parent allowance HK$132,000 HK$132,000
Disabled dependant allowance (in addition to any allowances already granted for the disabled person) HK$75,000 HK$66,000
     
Maximum deduction for amount paid for 2017/2018 2016/2017
Self-education expenses HK$100,000 HK$80,000
Home loan interest HK$100,000 HK$100,000
Elderly residential care expenses HK$92,000 HK$92,000
Contributions to recognised retirement schemes HK$18,000 HK$18,000
Charitable donations 35% of assessable income 35% of assessable income

 

Stamp duty 

 

(1) Transfer of immovable property – Ad valorem stamp duty 
Property consideration1 Scale 1 rates2,3 Scale 2 rates2
Up to HK$2,000,000 1.50%  HK$100 
HK$2,000,001 - $3,000,000 3.00%  1.50% 
HK$3,000,001 - $4,000,000 4.50% 2.25%
HK$4,000,001 - $6,000,000 6.00% 3.00%
HK$6,000,001 - $20,000,000 7.50% 3.75%
HK$20,000,001 and above 8.50% 4.25%

Notes: 

1. Marginal relief is available upon entry into each higher value band.

2. The Scale 2 rates apply to residential property acquired by a Hong Kong permanent resident who does not own any other residential property in Hong Kong at the time of acquisition and in some other specified circumstances. The Scale 1 rates apply to all other cases. 

3. The HKSAR Government has proposed to increase the duty rates from Scale 1 rates to a flat rate of 15% on transfer of residential properties. The flat rate, once enacted, will apply retrospectively from 5 November 2016.

 

(2) Special Stamp Duty on disposal of residential property
Holding period Duty rate
Six months or less 20%
More than six months but for 12 months or less 15%
More than 12 months but for 36 months or less 10%

 

(3) Buyer’s Stamp Duty (BSD) on acquisition of residential property
Duty rate 15%

 

(4) Lease of immovable property in Hong Kong
Lease period 2017/2018 2016/2017
Where the lease term is not defined or is uncertain 0.25% 0.25%
Not more than one year 0.25% 0.25%
More than one year but does not exceed three years 0.50% 0.50%
More than three years 1.00% 1.00%

 

(5) Transfer of Hong Kong stock 

The rate of stamp duty on stock transactions is 0.2% of the consideration ($2 per $1,000) per transaction. 

 

(6) Hong Kong bearer instrument

Duty of 3% of the market value is charged for any Hong Kong bearer instrument issued in respect of any stock. 

 

 

Tax facts and figures

 

 

The information in this booklet is based on taxation laws and practices as of 22 February 2017 and incorporates legislative proposals and measures contained in the 2017/18 Hong Kong Budget announced on the same date.

 

Note: Legislative proposals do not become law until their enactment and may be modified by the Legislative Council before being enacted.

 

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