Managed Payroll Services in Hong Kong

  • Payroll Processing Hong Kong

  • Fund Management Hong Kong

Hong Kong remains an attractive destination to many small and large multi-nationals, due to its attractive tax system and ease of doing business. Our Hong Kong Managed Payroll Service provides a very cost-effective solution to small entrepreneurial businesses and large multi-nationals alike.

Our services in Hong Kong include:

  • Full end to end payroll including adjustments, overtime, expenses etc
  • Range of payslips including both electronic and carbon based
  • Compliance with Labour Department, Hong Kong S.A.R.
  • Mandatory Provident Fund (MPF) returns and e-submission
  • Range of monthly and annual reports, including MPF Report
  • End of year tax consolidation and submission (IR56B, E, F & G)

Social Security Scheme

In Hong Kong, there is a social security scheme – Mandatory Provident Fund Schemes Ordinance where both the employer and the employee have to make contributions. The employee’s MPF contribution will be deducted from the employee’s salary.

Hong Kong Tax

The Inland Revenue Department (IRD) is the main tax authority in Hong Kong.

Profits Tax

All profits derived from trade, profession or business in Hong Kong, excluding profits from the sale of capital assets are taxable. There are no distinctions between residents and non-residents. A resident may derive profits from abroad without being taxed, while a non-resident may be taxed on profits derived in Hong Kong.

Profits Tax Rate

Type of Business Rate (%)
Corporations 16.5%
Unincorporated businesses 15%

Salaries Tax

All income derived from an office, employment or pension in Hong Kong, after deductions and allowances is taxable at progressive rates.   

Salaries Tax on Chargeable Income for Year of Assessment 2017/18 onwards

Net chargeable Income ($) Rate (%) Tax ($)
On the First 45,000 2% 900
On the Next 45,000 7% 3,150
Total 90,000 4,050
On the Next 45,000 12% 5,400
Total 135,000 9,450
Remainder 17%

Salaries Tax on Chargeable Income for Year of Assessment 2016/17

Net chargeable Income ($) Rate (%) Tax ($)
On the First 40,000 2% 800
On the Next 40,000 7% 2,800
Total 80,000 3,600
On the Next 40,000 12% 4,800
Total 120,000 8,400
Remainder 17%

If the tax on the net chargeable income exceeds the tax charged at standard rate on net total income (income after deductions but before allowances), the lower tax amount is charged.

Standard Rate for Salaries Tax on Net Total Income

Year of Assessment Tax Rate
2011/12 onwards 15%

Other Taxes

  • There are no tax or excise duties on exports. As for imports, they are generally tax-free except for motor vehicles for use on the road. The four types of dutiable commodities such as liquors, tobacco, hydrocarbon oil and methyl alcohol that are subjected to excise duties.
  • According to the Stamp Duty Ordinance – First Schedule, there are certain documents imposed with Fixed Duty from $3 to $100 while others are with Ad Valorem Stamp Duty at a rate between 0.1% and 8.5%.
  • The Property Tax is charged on the owners of land and/or buildings in Hong Kong at a 15% standard rate on the net assessable value of the property from YA 2008/09 onwards.
Managed Payroll Services