Exploring Hong Kong’s Corporate Tax Incentives

Why Hong Kong?

With a headline corporate tax rate capped at 16.5% and no VAT or sales tax, Hong Kong remains a leading destination for regional headquarters.

Two-Tiered Profits Tax Regime

The first HK$2 million of assessable profits are taxed at 8.25%, delivering meaningful savings for SMEs.

Additional Incentives

• Research & Development super-deductions up to 300%
• Tax exemption for qualified offshore funds
• No withholding tax on dividends and interest
• Extensive double tax treaty network

Businesses considering Asian expansion should evaluate how Hong Kong’s incentives compare with Singapore and other jurisdictions.