Recently visited pages
Salaries Tax
Scope of Charge
Hong Kong salaries tax is charged on income arising in or derived from Hong Kong as per regional source.
Assessment Period
From 1 April of one year to 31 March of the next year
Deductions and Allowances
Salaries tax clearly defines deductible items, that deductible portion includes donations from governmentally approved charitable organizations, contributions paid to recognized retirement schemes, self-education expenses, interest on personal home loans and all outgoing expenses incurred in order to fully or necessarily produce the assessable income. Below please find the deductions and allowances for year 2007/08 and 2008/09:
| Allowances in Computing Salaries Tax(HK$) | 2008/09 | 2007/08 |
|---|---|---|
| Basic allowance | 108,000 | 100,000 |
| Married person's allowance | 216,000 | 200,000 |
| Child allowance (each) year of birth other years |
100,000 50,000 |
100,000 50,000 |
| Allowance for dependent parents, grandparents and grandparents-in-law (each) | 30,000 | 30,000 |
| Additional allowance for dependent parents, grandparents, grandparents-in-law (dependent family members residing with taxpayer) (each) | 30,000 | 30,000 |
| Dependent siblings allowance (each) | 30,000 | 30,000 |
| Single parent allowance (each) | 108,000 | 100,000 |
| Disabled dependent allowance (each) | 60,000 | 60,000 |
| Maximum Deductions in Computing Salaries Tax | ||
|---|---|---|
| Deduction Items | Deductible Amounts (2008/09) |
Deductible Amounts (2007/08) |
| Self-education Expenses | 60,000 | 60,000 |
| Home loan interest | 100,000 | 100,000 |
| Mandatory contribution to Mandatory Provident Fund ("MPF Scheme") or contribution to recognized retirement schemes | 12,000 | 12,000 |
| Elderly residential care expenses | 60,000 | 60,000 |
| Approved charitable donations [(income – allowable expenses)×percentage] | 35% | 25% |
Rate of Taxation
Rate of Taxation Salaries tax is chargeable at progressive rates or standard rate, which will be the smaller of the following:
1) 15% (2007/08:16%) of net total income chargeable at standard rate
2) Net chargeable income at salaries tax progressive rates
| Salaries Tax Progressive Rates (income less deduction items and allowances) | |
|---|---|
| First $40,000 (2007/08: First $35,000) | 2% |
| Next $40,000 (2007/08: Next $35,000) | 7% |
| Next $40,000 (2007/08: Next $35,000) | 12% |
| On the remainder | 17% |
Provisional Salaries Tax
Before the related tax year ends, the Inland Revenue Department (IRD) will impose the provisional salaries tax on persons according to the tax payment assessed in the previous year. In the succeeding year, when the tax payment for the related year is assessed, the provisional tax paid will be used to pay the salaries tax payable in that year.
- You can click here for information about "Hong Kong Company Formation" or "FAQs of HongKong Taxation"
If you would like further information about Salaries Tax, please contact our professionals and we will provide you with free advisory
Online Enquiry
Useful Links
Please select the links
Contact Us
Hong Kong Headquarters
Rooms 1102-1103, 11/F,
Kowloon Building,
555 Nathan Road, Mongkok,
Kowloon, Hong Kong
Tel: (852) 2388 7870
Fax: (852) 2388 7900
Email: info@conpak.com
Hong Kong Office
Rooms 1402-1403, 14/F,
Kowloon Building,
555 Nathan Road, Mongkok,
Kowloon, Hong Kong
Tel: (852) 2892 1819
Fax: (852) 2893 1699
Email: enquiry@conpak.com
Shanghai Office
Room 2703, 27/F,
2 Grand Gateway,
3 Hongqiao Road, Xuhui District,
Shanghai 200030, China
Tel: (86 21) 6448 1122
Fax: (86 21) 6448 6268
Email: shanghai@conpak.com.cn
Shenzhen Office
Rooms 2711-2712, 27/F,
Shenzhen International
Chamber of Commerce Tower,
168 Fuhua 3rd Road,
CBD Futian District,
Shenzhen 518048, China
Tel: (86 755) 8882 0088
Fax: (86 755) 8831 3533
Email: shenzhen@conpak.com.cn
