Hong Kong profits tax calculator

BUSINESS TAX BUDGET

Estimated tax on assessable profits

Enter assessable profits and select the business type and assessment year to view the rate bands and tax reduction. Both scenarios can be compared while eligibility for two-tier rates is being confirmed.

1. Business type 2. Year of assessment 3. Assessable profit (HKD)

Use the amount after tax adjustments and any applicable loss offset. Bank balances, turnover and income less all expenses are not necessarily assessable profit. A hypothetical figure is useful for comparison but cannot be used as a filing computation.

4. Two-tier eligibility

How is eligibility checked?

Two-tier rates are subject to eligibility. Generally, only one nominated connected entity may use them in an assessment year, and some concessionary regimes are excluded. Where other companies, multiple sole-trader businesses or control relationships are involved, eligibility should be confirmed with the tax-filing professional.

Calculation method and scope

For ordinary corporate business, the standard rate is 16.5%; eligible two-tier rates are 8.25% on the first HK$2 million and 16.5% above it. For sole traders and partnerships of individuals, the corresponding rates are 15% and 7.5%. This tool does not handle mixed partnerships with corporate partners, personal assessment, concessionary regimes or minimum top-up tax.

The reduction is capped at HK$3,000 for 2025/26 and HK$1,500 for 2024/25, never exceeding the calculated current-year tax. Results exclude provisional tax credits and the following year’s provisional tax, and are not the balance payable on a tax demand. Figures display two decimal places; the IRD determines the assessment and adjustments.

Calculations run in this browser; the entered data is not submitted with an enquiry form.

Documents for tax filing

Collect accounts, bank records, supporting documents and the return received.

WeCorp arranges accounting and tax services covering bookkeeping, financial statements, tax adjustments, assessable-profit calculations and return filing, with statutory audit work coordinated where required.