So, you have recently got married and planned to move your business to Hong Kong and settle down there. You may already have gone through the business taxes there on Google, but what’s about the Hong Kong Individual Income Tax? Have you checked that? Even if you have done so, you may not find those details that we are going to disclose here. Our today’s blog may be helpful for you to dive deep into personal tax details in Hong Kong.

What to know about Hong Kong Individual Income Tax

Paying the personal tax return on the deadline is a MUST unless you want to experience severe consequences. But it can be challenging for you until you know the following details. Have a look:

Where can you get the best advantages from Hong Kong Personal Income Tax?

Hong Kong is the best place to expand business for its ease of taxes, but the Individual Income Tax rates are not much behind. Even for residents and non-residents, Hong Kong has smooth tax rates, like:

  • Only 15% of your total accessible income
  • You don’t have to pay any sales tax like VAT or GST
  • For a resident, taxes are on only what you earn in Hong Kong
  • There’s no dividend and inheritance tax.

When to file and return the Hong Kong Individual Income Tax?

The financial year in Hong Kong is from April 1 to March 31, and you have to pay taxes before the year ends. We, APAC Taxation Group, can help you prepare and file taxes within the deadline and ensure to keep you compliant.

How can expats avoid paying taxes twice in Hong Kong?

If you are a US resident living in Hong Kong, the tax payment could be twice for you as per the laws of both countries. There’s no treaty between the USA and Hong Kong, but you can avoid paying tax twice in two ways:

  • Foreign Income Exclusion– In this process, you can exclude the US wages from your tax details only when you have met the residency requirements.
  • Foreign Tax Credit– You can claim a credit on the income taxes you have paid in Hong Kong.

Was it helpful? If you need more details about Hong Kong Individual Income Tax and help with tax preparation or returns, count on us! Our team of CPAs can help you out here throughout the process. Keep on reading our blogs for more info!