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Hong Kong (SAR) - Other taxes and levies

Hong Kong (SAR) - Other taxes and levies

Taxation of international executives

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Social security levies

Are there social security/social insurance taxes in Hong Kong (SAR)? If so, what are the rates for employers and employees?

There are no social security/social insurance taxes in Hong Kong (SAR).

Mandatory provident fund

Employers are required to make arrangements for all employees aged between 18 and 65 normally residing and working in Hong Kong (SAR) to join a mandatory provident fund (MPF) scheme. However, exemption from the MPF requirements is available to any person entering Hong Kong (SAR) for the purpose of being employed or self-employed (i.e., on a valid employment visa) for a limited period (13 months or less) or who is a member of an overseas retirement scheme.

Employer and employee

Relevant Income - includes wages, salary, leave pay, fee, commissions, bonuses, gratuity, perquisites, or allowances expressed in monetary terms, paid or payable by an employer (directly or indirectly) to the employee, but does not include severance payment or long service payments under the Employment Ordinance.

  Paid by employer Paid by employee
   
Total
Mandatory Provident Fund 5% of relevant income, maximum contribution of HKD1,500 a month 5% of relevant income, maximum contribution of HKD1,500 a month 10% of relevant income, maximum contribution of HKD3,000 a month

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Hong Kong (SAR)?

None. Estate duty was abolished with effect from February 2006.

Real estate tax

Are there real estate taxes in Hong Kong (SAR)?

Yes. Income from land and buildings located in Hong Kong (SAR) is subject to property tax.

Government rent and rates are payable on properties throughout the territory.

Sales/VAT tax

Are there sales and/or value-added taxes in Hong Kong (SAR)?

No.

Unemployment tax

Are there unemployment taxes in Hong Kong (SAR)?

No.

Other taxes

Are there additional taxes in Hong Kong (SAR) that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

  • Stamp duty may be payable on transactions of properties and transfers of Hong Kong (SAR) stock.
  • Excise duty on liquor (excluding beer and wine) and tobacco.
  • Rates on properties.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country’s fiscal or banking authorities?

There is no requirement to report foreign financial assets to either the Hong Kong (SAR) fiscal or banking authorities.

However, Hong Kong (SAR) has signed up to automatic exchange of information under the Common Reporting Standard - the standard for all automatic exchange of financial information.

Financial institutions in Hong Kong (SAR) are required to identify and report to the Inland Revenue Department the financial accounts held be tax residents of overseas reportable jurisdictions on an annual basis. The Inland Revenue Department will pass this information to the relevant overseas jurisdictions. Reporting will commence from 2018 with respect to 2017 account information. Foreign financial assets captured by overseas tax authorities, who have also signed up the above network of automatic exchange, will also be exchanged with the Inland Revenue Department. The information exchanged will depend on the specifics of the relevant agreement.

© 2018 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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