Hong kong personal income tax rate table

It is no exaggeration to say that Hong Kong is a "tax paradise". As the saying goes, there is no harm without comparison. If we compare the tax rates of the mainland and other similar economically developed areas, this kind of tax depression is worthy of the name.

202 1 The tax season is coming. How low is the low tax rate in Hong Kong?

(The most familiar green bomb)

Hong Kong's low tax rate and simple tax system have always been attractive to mainland investors. Hong Kong is taxed according to its territory, and only profits and income from Hong Kong are taxed. Let's first look at the definition of tax residents in Hong Kong:

Judgment of tax residents

-Personal

Individuals who meet one of the following conditions shall be regarded as taxpayers in China Mainland and Hongkong:

(a) individuals who are ordinarily resident in Hong Kong;

(2) Individuals who have stayed in China and Hongkong for more than 180 days in one tax year or for more than 300 days in two consecutive tax years (one of which is the relevant tax year);

If an individual has a permanent residence in Hong Kong where his or her family lives, he or she will generally be regarded as "ordinarily residing in China and Hong Kong". Specific legal provisions are as follows:

(1) "Ordinary residence" refers to the continuous residence of an individual in the mainland of China and Hongkong, except for occasional or temporary absence from overseas.

(b) To be regarded as an individual who ordinarily resides in China and Hong Kong, the individual must habitually and ordinarily reside in Hong Kong, China, unless he leaves the country temporarily or unexpectedly within a certain period of time.

Usually, the concept of residence means that an individual voluntarily lives in Hong Kong for the purpose of settlement, which has certain continuity, regardless of the length of time, and is the normal state of his current life.

When determining the number of days an individual stays in China and Hong Kong, if his stay in China and Hong Kong is less than 1 day, it shall be calculated as 1 day.

Criteria for determining whether non-residents pay taxes in Hong Kong: whether the income comes from within Hong Kong.

-Entity

Units that meet one of the following conditions shall be regarded as tax residents of China and Hongkong:

(a) When the entity is a company, it is a company incorporated in Hong Kong, China or registered outside Hong Kong, China, but its main management or control is a company conducted in Hong Kong, China;

(b) When the entity is not a company, it is an entity established under the laws of Hong Kong, China or other countries or regions, but its main management or control is an entity conducted in Hong Kong, China.

"Main management or control" in the legal sense does not require that both management and control must take place in China and Hongkong. "Management" refers to the daily business and operation management, or the implementation of decisions made by the top management. "Control" refers to the top management's control over the overall operation of the enterprise, such as making core business strategies, making strategic decisions, financing decisions, performance evaluation, etc.

How low is the tax?

Income tax in Hong Kong mainly falls into three categories:

(1) The wage tax rate is progressive and the tax rate is 2%-17%;

(2) Profit tax rate 16.5%, non-corporate profit tax rate15%;

(3) The property tax rate is 15%, and the house repair can be deducted by 20%.

Although income tax in Hong Kong is classified. Hong Kong residents can apply for personal assessment and combine salaries tax, profits tax and property tax. In other words, personal income tax is a comprehensive tax return method for individuals.

Hong Kong's tax system has no capital gains tax, gift tax, inheritance tax (abolished), value-added tax, sales tax and business tax.

Individual tax is everyone's biggest concern. Let's take a look at the individual tax rates in the Mainland:

202 1 The tax season is coming. How low is the low tax rate in Hong Kong?

202 1 The tax season is coming. How low is the low tax rate in Hong Kong?

In contrast, we can clearly find that Hong Kong adopts the standard tax rate of 15% or the five-level excess progressive tax system of 2%- 17%, and the comprehensive income tax rate of the seven-level excess progressive tax system in the Mainland is 3%-45%. In addition to the great difference in the highest marginal tax rates between the two places (45% in the Mainland and Hong Kong 17%), the tax rates in Hong Kong are also very different. The tax rate in Hong Kong is very broad, and it is levied at different tax rates at equal intervals.

Judging from the tax deduction items, the wages and salaries in the mainland are exempt from tax by 5,000 yuan, and the deduction items are "five insurances and one gold"; Hong Kong has personal tax allowance. According to everyone's different situation, there is a set of very humanized and intimate tax calculation methods, and different amounts are set according to individuals, married, children, support, single parents, disabilities and so on. For example, the basic personal allowance of 201819 is 13200 Hong Kong dollars per year, and the allowance for each child is 1200. Factors such as whether a taxpayer is married, whether he has children, and whether he supports his parents will affect the taxpayer's allowance, thus affecting the final tax payment.