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Personal tax

There are three main personal taxes under the Hong Kong Inland Revenue Ordinance:

  • Salaries tax

  • Profits tax

  • Property tax

Salaries tax

  • Most income arising in or derived from Hong Kong, including holding any office, being employed or receiving pension, is subject to salaries tax, but not all income is taxable income.

  • Routine operating income (such as income from the sale of goods or provision of services) is usually regarded as business income and is subject to tax.

  • The Inland Revenue Department provides several booklets for reference by proprietors of sole proprietorships/partnerships:

    • Instructions and Frequently Asked Questions for New Business Opening

    • What income is taxable? What expenses are tax deductible?

    • Frequently asked questions about partnership business

Sole proprietorship / partnership business

Property tax is a tax levied on the owners (owners) of land and/or buildings in Hong Kong. Generally calculated at the standard tax rate (15%).

The assessable value of a property is determined based on the consideration paid to the owner in exchange for the right to use the property. The consideration includes the total rent received or receivable, license fees paid for the right to use the building, lump sum fees, service fees and management fees paid to the landlord, and landlord expenses paid by the tenants (e.g. :repair costs). The assessable value of the property (after deducting rates and irrecoverable rent agreed to and paid by the owner) less 20% as statutory allowance for repairs and expenses, other expenses such as government rent and Management fees are non-deductible. Amounts which have been made as irrecoverable rental deductions and are subsequently recovered shall be deemed to be consideration for calculation in the year in which they are recovered.

Property tax

If you need further assistance,

please feel free to inquire.

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