Payroll taxes
in Hong Kong.

SALARY PAYMENT IN Hong Kong Dollars (HKD, $)

CONTRACT LANGUAGES Chinese / English

PAYROLL TAX 5% + 1,500 HKD

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Hong Kong

What is the average employer tax rate in Hong Kong?

The corporate income tax rate in Hong Kong is 16.5%. The tax is applied to the total taxable profits of a company, regardless of whether the profits are distributed to shareholders.

Hong Kong – 2023 CIT tax rates

Taxable income (HKD)	Tax rate
0 – 2,000,000	8.25%
2,000,001+	16.5%

What is the average employee tax rate in Hong Kong?

Employees in Hong Kong must pay the applicable rate of salary tax, which is progressive and ranges from 2% to 17% depending on income:

Hong Kong – Individual Income Tax

Taxable Income (HKD)	Tax rate 2023
0 – 50.000	2%
50.000 – 100.000	1.000 + 6% of income above 50.000
100.000 – 150.000	4.000 + 10% of income above 100.000
150.000 – 200.000	9.000 + 14% of income above 150.000
Above 200.000	16.000 + 17% of income above 20.000

The maximum payable is 15% of net income (after all deductions)

The following are included in the salary for taxation calculation:

Education allowance
Food, fuel, water, light or medical care
Housing benefits
Travelling allowance
Contribution to any retirement scheme
Any benefits convertible into money

Employer contributions in Hong Kong

Employers must contribute 5% of an employee’s salary towards the Mandatory Provident Fund (MPF).

Hong Kong – Employer contributions

Contribution item	Contribution rate
Mandatory Provident Fund	5%

Employee contributions in Hong Kong

Employees must also contribute 5% of their salary towards the Mandatory Provident Fund (MPF), in addition to the employer contribution, as long as they meet the relevant income threshold.

Hong Kong – Employee contributions

Contribution item	Contribution rate
Mandatory Provident Fund	Voluntary for earnings up to $7,100. From $7,100-$30,000 per month, 5%

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FAQs

What is the tax bureau of Hong Kong called?

The tax bureau of Hong Kong is called the Inland Revenue Department (IRD)

Is there an employer payroll tax contribution in Hong Kong?

There is no employer payroll tax contribution in Hong Kong, but there is a mandatory contribution to the Mandatory Provident Fund.

How does the payroll tax system of Hong Kong work?

Employers are not responsible for withholding income tax from their employees’ wages. Employees are expected to submit their own taxes and pay the Inland Revenue Department in Hong Kong at the end of each tax year. Employers are required to keep payroll records for at least seven years.

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