| Hong Kong Tax Rates (Note 1):
Profits Tax
| Rates of tax |
2007/2008 |
2006/2007 |
| Companies |
17.5% |
17.5% |
| Unincorporated businesses |
16% |
16% |
Salaries Tax
| Rates of tax |
2007/2008 |
|
2006/2007 |
| First HK$35,000 |
2% |
First HK$30,000 |
2% |
| Next HK$35,000 |
7% |
Next HK$30,000 |
7% |
| Next HK$35,000 |
12% |
Next HK$30,000 |
13% |
| On the remainder |
17% |
On the remainder |
19% |
| Standard rate |
16% |
Standard rate |
16% |
| Personal allowances |
2007/2008 |
2006/2007 |
| Basic allowance |
HK$100,000 |
HK$100,000 |
| Married person's allowance |
HK$200,000 |
HK$200,000 |
| Child allowance |
| |
| 1st to 9th child (each) |
 Year of birth |
| Other years | |
|
|
Dependent parent /
grandparent allowance |
| |
| Aged 60 or above |
| not residing with taxpayer |
| residing with taxpayer |
| |
| Aged 55 to 59 |
| not residing with taxpayer |
| residing with taxpayer | |
|
| |
| |
| HK$30,000 |
| HK$60,000 |
| |
| |
| HK$15,000 |
| HK$30,000 | |
|
| |
| |
| HK$30,000 |
| HK$60,000 |
| |
| |
| HK$15,000 |
| HK$30,000 | |
| Dependent brother / sister allowance (for whom no child allowance claimed) |
HK$30,000 |
HK$30,000 |
| Single parent allowance |
HK$100,000 |
HK$100,000 |
| Disabled dependant allowance (in addition to any allowances already granted for the disabled person) |
HK$60,000 |
HK$60,000 |
| Deductions (maximum deduction for amount paid for): |
2007/2008 |
2006/2007 |
| Self-education expenses |
HK$60,000 |
HK$40,000 |
| Home loan interest |
HK$100,000 |
HK$100,000 |
| Elderly residential care expenses |
HK$60,000 |
HK$60,000 |
|
Contributions to recognised retirement schemes |
HK$12,000 |
HK$12,000 |
|
Charitable donations |
25% of assessable income |
25% of assessable income |
Property Tax
Basis of taxation
Property tax is charged on the owner of any land or buildings in Hong Kong at the standard rate (16%) on the net assessable value of such land or buildings.
Stamp Duty
Immovable property: conveyance on sale
| Rates of duty on property consideration |
2007/2008 |
2006/2007 |
| Up to HK$1,000,000 |
HK$100 |
HK$100 |
| HK$1,000,001 - $2,000,000 |
HK$100 |
0.75% |
| HK$2,000,001 - $3,000,000 |
1.50% |
1.50% |
| HK$3,000,001 - $4,000,000 |
2.25% |
2.25% |
| HK$4,000,001 - $6,000,000 |
3.00% |
3.00% |
| HK$6,000,001 and above |
3.75% |
3.75% |
Marginal relief is available upon entry into each higher rate band.
Agreement for sale of residential property
Chargeable agreements executed on or after 1 April 1999 should be submitted for stamping within 30 days after execution. However, payment of the stamp duty may be deferred until the assignment is executed in conformity with the agreement or the date of re-sale of the property. The maximum period of deferral is 3 years after the execution of the agreement.
Hong Kong stock
With effect from 1 September 2001, the rate of stamp duty on stock transactions is 0.2% (HK$2 per HK$1,000) per transaction. This is payable half by the vendor and half by the purchaser.
Hong Kong bearer instrument
Duty of 3% of the market value is charged for any Hong Kong bearer instrument issued in respect of any stock.
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