Hong Kong SAR
Individual - Sample personal income tax calculationLast reviewed - 30 December 2022
Below is a sample salaries tax computation for year of assessment 2022/23 for illustrative purposes.
- The individual is a married person with two children both below age 18.
- The individual’s spouse is not working and the two children are maintained by the individual.
- The total assessable income of the individual consists of salaries of HKD 650,000 and year-end bonus of HKD 50,000.
- The individual made contributions of HKD 18,000 to an MPF scheme during the year.
- The individual made qualified charitable donations of HKD 3,000 during the year.
|Salaries tax computation||HKD||HKD|
|Total assessable income||700,000|
|Less: Concessionary deductions|
|Retirement scheme contributions||(18,000)||(21,000)|
|Married person’s allowance||(264,000)|
|Child allowances (HKD 120,000 x 2)||(240,000)||(504,000)|
|Net chargeable income||175,000|
|Tax at progressive rates:|
|First HKD 50,000 @ 2%||1,000|
|Next HKD 50,000 @ 6%||3,000|
|Next HKD 50,000 @ 10%||5,000|
|Remainder HKD 25,000 @ 14%||3,500|
|Tax payable (1)||12,500|
- The tax amount calculated based on the standard rate (i.e. HKD 679,000 @15% = HKD 101,850) is higher than that computed at progressive rates so the standard rate would not apply. Tax reduction for the year of assessment 2022/23 (if any) has not yet been announced.