Hong Kong SAR

Overview

Last reviewed - 31 December 2020

Hong Kong Special Administrative Region (SAR) is located in Eastern Asia on the southeast coast of Mainland China. The official languages of Hong Kong SAR are Chinese and English, and the currency is the Hong Kong dollar (HKD). Hong Kong SAR continues to link its currency closely to the United States dollar (USD), maintaining an arrangement established in 1983.

Hong Kong was a self-governing British colony from 1841 to mid-1997. Pursuant to the 1984 Sino-British Joint Declaration, Hong Kong became a SAR of the People's Republic of China on 1 July 1997. According to the Basic Law (Hong Kong SAR's constitutional document), Hong Kong SAR is guaranteed a high degree of autonomy in all matters except foreign and defence affairs for the next 50 years after the sovereignty transfer under the 'one country, two systems' policy. The Basic Law ensures that Hong Kong SAR's legal system is separate from the one of Mainland China and remains within the common law system. The Hong Kong SAR Government is committed to upholding the rule of law, which has played a vital role in Hong Kong SAR's success in the past.

Hong Kong SAR is one of the freest economies in the world. Hong Kong SAR became a member of the Asia Pacific Economic Cooperation in 1991 and a member of the World Trade Organization (WTO) on 1 January 1995.

Over the past few decades, Hong Kong SAR has been transformed from a labour intensive manufacturing-based economy towards a high value-added and knowledge-based economy, with focus on international trade, financial services, tourism, etc. Since the handover in 1997, Hong Kong SAR has become increasingly integrated with Mainland China through trade, tourism, and financial links. Hong Kong SAR has also established itself as the premier stock market for Chinese firms seeking to list abroad and a prime renminbi (CNY) offshore centre.

PwC Mainland China, Hong Kong SAR and Macau SAR work together on a collaborative basis, subject to local applicable laws. Collectively, we have over 800 partners and over 20,000 people in total.

We provide organisations with the professional service they need, wherever they may be located. Our highly qualified, experienced professionals listen to different points of view to help organisations solve their business issues and identify and maximise the opportunities they seek. Our industry specialisation allows us to help co-create solutions with our clients for their sector of interest.

We are located in these cities: Beijing, Changsha, Chengdu, Chongqing, Dalian, Guangzhou, Guiyang, Haikou, Hangzhou, Hefei, Hong Kong SAR, Jinan, Kunming, Macau SAR, Nanjing, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Wuhan, Xiamen, Xi’an, Zhengzhou, and Zhuhai. 

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

First HKD 2,000,000 of assessable profits at 8.25%;

Remaining assessable profits at 16.5%

Corporate income tax (CIT) due dates
CIT return due date

Tax returns are issued on the first working day of April each year. The filing due date is usually within a month from the issue date of the return. Extension is available for certain companies (e.g. for companies with an accounting year end date of 31 December, the filing due date is normally extended to 15 August of the year in which the return is issued).

CIT final payment due date

For companies with an accounting year end date of 31 December, the final tax payment for a given tax year is usually due in November of the year in which the return is issued.

CIT estimated payment due dates

For companies with an accounting year end date of 31 December, the provisional tax payments for a given tax year are to be paid in two instalments, which are usually due in November of the current year and January of the next year.

Personal income tax (PIT) rates
Headline PIT rate (%)

Progressive rates: ranging from 2% to 17%;

Standard rate: 15%

Personal income tax (PIT) due dates
PIT return due date

Individual tax returns are issued on the first working day of May each year. The filing deadline is usually within a month from the date of issue. Extension is available for taxpayers with tax representatives and in certain circumstances (e.g. e-filing).

PIT final payment due date

Usually due in January of the year following the year in which the return is issued.

PIT estimated payment due dates

The provisional tax payments for a given tax year are to be paid in two instalments, which are usually due between January and April of the year following the year in which the tax return is issued.

Value-added tax (VAT) rates
Standard VAT rate (%)

NA

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 0 / 0 / 0;

Non-resident: 0 / 0 / 2.475 to 4.95

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

NA

Headline individual capital gains tax rate (%)

NA

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

NA

Headline gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.