Hong Kong tax in 2026: rates, offshore status and 0%
8.25%, 16.5%, or 0%? Finally understand Hong Kong's territorial tax system and how to obtain the offshore status that exempts your profits.
Hong Kong’s tax system is one of its greatest assets — provided you understand it. Here is everything you need to know in 2026.
The principle: territorial taxation
Hong Kong only taxes income that is sourced in Hong Kong. That is the key to everything. If your profits come from activities carried out outside Hong Kong, they may be exempt.
Corporate tax rates
The two-tier system is one of the most competitive in the world:
- 8.25% on the first HK$2M of profits
- 16.5% above that
No VAT, no capital gains tax, no withholding tax on dividends.
Offshore status: how to reach 0%
If your clients and operations are outside Hong Kong, you can file an Offshore Profits Tax Claim with the IRD (tax authority). If successful, your profits are taxed at 0%.
Note: offshore status is not automatic. It is prepared from year one, with rigorous documentation of your flows.
Obligations not to overlook
Even at 0%, a Hong Kong company must:
- Keep accounting records
- Produce audited accounts annually by a local CPA
- File a Profits Tax Return
- Renew its Business Registration
What about your country of residence?
This is the most important — and most forgotten — point. A Hong Kong company must align with the tax rules of your country of residence. Tax residency, permanent establishment and controlled foreign company (CFC) rules must be anticipated.
We systematically check the applicable tax treaty during the free consultation. Let’s talk about your situation.