Salaries Tax

Scope of Charge

Hong Kong salaries tax is charged on income arising in or derived from Hong Kong as per regional source.

Assessment Period

From 1 April of one year to 31 March of the next year.

Deductions and Allowances

Salaries tax clearly defines deductible items, that deductible portion includes donations from
governmentally approved charitable organisations, contributions paid to recognized
retirement schemes, self-education expenses, interest on personal home loans and all
outgoing expenses incurred in order to fully or necessarily produce the assessable income.
The information for tax allowances and tax rates for the year 2012/13 and 2013/14 is listed below:

Allowances in Computing Salaries Tax(HK$)
2012/2013
2013/2014
Basic allowance
120,000
120,000
Married person’s allowance
240,000
240,000
Child allowance for each of the 1st to 9th child – born within the year of assessment – born in other years of assessment
126,000
63,000
140,000
70,000
Allowance for dependent parents, grandparents and grandparents-in-law who are 55 years old or above but below 60 (each)
19,000
19,000
Additional allowance for dependent parents, grandparents
grandparents-in-law who are 55 years old or above but below 60
(dependent family members residing with the taxpayer)(each)
19,000
19,000
Allowance for dependent parents, grandparents and grandparents-in-
law who are 60 years old or above, or eligible to claim allowances
under the Government’s Disability Allowance Scheme (each)
38,000
38,000
Additional allowance for dependent parents, grandparents and
grandparents-in-law who are 60 years old or above, or eligible to claim allowances under the Government’s Disability Allowance Scheme (each)
38,000
38,000
Dependent siblings allowance (each)
33,000
33,000
Single parent allowance
120,000
120,000
Disabled dependent allowance (each)
66,000
66,000
Maximum Deductions in Computing Salaries Tax
Deduction Items
Deductible Amounts (2012/13)
Deductible Amounts
(2013/14)
Self-education Expenses
60,000
80,000
Home loan interest
100,000
100,000
Mandatory contributions to mandatory provident fund schemes or recognized retirement schemes
14,500
15,000
Elderly residential care expenses
76,000
76,000
Approved charitable donations [(income – allowable expenses – depreciation allowances)×percentage]
35%
35%
Rate of Taxation

Rate of Taxation Salaries tax is chargeable at progressive rates or standard rate, which will be the smaller of the following:

  • 15% of net total income chargeable at standard rate
  • Net chargeable income at salaries tax progressive rates
Salaries Tax Progressive Rates (income less deduction items and allowances)
2012/2013
2013/2014
First $40,000 (2007/08: First $35,000)
2%
2%
Next $40,000 (2007/08: Next $35,000)
7%
7%
Next $40,000 (2007/08: Next $35,000)
12%
12%
On the remainder
17%
17%
[]
1 Step 1

We have more than 23 years of Professional Experience in Company Formation and Tax Advisory.Please let us know if you have any enquiry about this topic, our professional consultants will reply to you as soon as possible. *Required field

Enquiry
Name
Contact No
Question
0 /
Previous
Next
powered by FormCraft


  Email Us

   HongKong:+852 2143 9702

   Shenzhen:+86 755-2588 0434

[]
1 Step 1
Name
Message
0 /
Previous
Next
powered by FormCraft