Personal tax in Hong Kong: the basics
Year of assessment, the tax return, allowances and provisional tax, explained for a first-year arrival.
Draft for review by the operating entity's legal adviser before publication.
How it works
- The year of assessment runs from 1 April to 31 March. Salaries tax is charged on income from a Hong Kong employment at progressive rates or a standard rate, whichever is lower, after allowances and deductions.
- There is no payroll withholding. You receive a tax return (BIR60), file it within the stated period, and pay on the demand note the Inland Revenue Department issues.
Provisional tax
- Your first demand note usually includes provisional tax for the following year, so the first bill is larger than one year’s tax. Budget for it.
Keep
- Your employment contract, payslips, the employer’s return copy (IR56B) and receipts for deductible items such as MPF contributions and approved charitable donations.
A note on this guide
This is general administrative information, not legal or immigration advice. Rules, fees and timelines change; the official sources listed below are authoritative. FastHK is not a government body and cannot influence any decision or appointment.