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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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Hire and pay talents
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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.
| Taxable income (HKD) | Tax rate |
|---|---|
| 0 – 2,000,000 | 8.25% |
| 2,000,001+ | 16.5% |
Employees in Hong Kong must pay the applicable rate of salary tax, which is progressive and ranges from 2% to 17% depending on income:
| 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:
Employers must contribute 5% of an employee’s salary towards the Mandatory Provident Fund (MPF).
| Contribution item | Contribution rate |
|---|---|
| Mandatory Provident Fund | 5% |
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.
| Contribution item | Contribution rate |
|---|---|
| Mandatory Provident Fund | Voluntary for earnings up to $7,100. From $7,100-$30,000 per month, 5% |
Your business can easily hire employees in Hong Kong without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The tax bureau of Hong Kong is called the Inland Revenue Department (IRD)
There is no employer payroll tax contribution in Hong Kong, but there is a mandatory contribution to the Mandatory Provident Fund.
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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71 Robinson Road #13-153
068895, Singapore
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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