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Summary of Hong Kong Taxes 2024-25

Profits Tax
2024-25* (unchanged)
2023-24

Corporations

Tax Rate

Tax Rate

         - First HK$2m profits

8.25%

8.25%

         - The remainder

16.5%

16.5%

Unincorporated business

15%

15%

*For 2023-24, the profits tax is proposed to be reduced by 100%, subject to a ceiling of HK$3,000. (2022-23: HK$6,000).

Salaries Tax
  • Salaries tax is charged at the lower of net chargeable income (Total Income – Deductions – Allowances) at progressive rates or net total income (Assessable Income – Deductions) at standard rate.

  • Standard rate remains the same at 15% for 2023-24.

Proposed two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the 2024-25 assessment year
Net income (Total Income - Deductions)
Tax rates

$5 million or below

15% (remains unchanged)

Above $5 million

First $5 million: 15% Portion exceeding $5 million: 16%

Progressive rates
Income
2024-25* (unchanged)
2023-24

First HK$50,000 chargeable income

2%

2%

Next HK$50,000

6%

6%

Next HK$50,000

10%

10%

Next HK$50,000

14%

14%

Remainder

17%

17%

*For 2023-24, the salaries tax and tax under personal assessment are proposed to be reduced by 100%, subject to a ceiling of HK$3,000. (2022-23: HK$6,000)

Allowances
2024-25 (unchanged)
2023-24

Personal allowance

Basic

HK$132,000

HK$132,000

Married

HK$264,000

HK$264,000

Single Parent

HK$132,000

HK$132,000

Disabled

HK$75,000

HK$75,000

Child allowances (1st to 9th child) (each)

In the Year of Birth

HK$260,000

HK$240,000

Other years

HK$130,000

HK$120,000

Dependent parent/grandparent allowances (each)

Basic (Age 60 or above)

HK$50,000

HK$50,000

Additional allowance (for dependent living with taxpayer) (Age 60 or above)

HK$50,000

HK$50,000

Basic (Age 55-59)

HK$25,000

HK$25,000

Additional allowance (for dependent living with taxpayer) (Age 55-59)

HK$25,000

HK$25,000

Dependent brother/sister allowance (each)

HK$37,500

HK$37,500

Disabled dependent allowance (each)

HK$75,000

HK$75,000

Deductions (Maximum Limits)
2024-25 (unchanged)
2023-24

Self-Education expenses

HK$100,000

HK$100,000

Home loan interest

HK$100,000 (20 years of entitlement period)

HK$100,000 (20 years of entitlement period)

Elderly residential care expenses

HK$100,000

HK$100,000

Mandatory contributions to recognized retirement schemes

HK$18,000

HK$18,000

Approved charitable donations

35% of assessable income

35% of assessable income

Annuity premiums and MPF voluntary contributions

HK$60,000

HK$60,000

Premiums paid under voluntary Health Insurance Scheme

HK$8,000

HK$8,000

Property Tax

The standard rate (for non-corporate owners) remains at 15% for 2024-25.

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