Hong Kong 2013-14 Tax Facts
Salaries Tax
Hong Kong 2013-14
Budget Insights
Charged on Hong Kong sourced remuneration inclusive of certain benefits in kind. Housing benefit is one source of relief, and is subject to preferential tax treatment, generally at an equivalent rate of 10% of an employee’s non-housing remuneration.
Other forms of relief include:
- “60 days exemption” rule for both Hong Kong and foreign employment
- “Days-in-days-out” calculation rule for foreign employment
Tax rates and allowances
The tax charge is the lower of:
- the standard rate of 15% applying to net chargeable income before personal allowances
- the progressive rates applying to net chargeable income
| Progressive rates | 2013-14 | 2012-13 |
| First HK$40,000 at | 2% | 2% |
| Next HK$40,000 at | 7% | 7% |
| Next HK$40,000 at | 12% | 12% |
| On the remainder at | 17% | 17% |
| Personal allowances | 2013-14 (HK$) | 2012-13 (HK$) |
| Basic allowance (single) | 120,000 | 120,000 |
| Married person’s allowance* | 240,000 | 240,000 |
| Child allowance (each) 1st to 9th child ‧Year of birth ‧Other years | 140,000 70,000 | 126,000 63,000 |
| Dependent parent or grandparent allowance (each) Aged 60 and above ‧Residing with taxpayer ‧Not residing with taxpayer Aged 55 to 59 ‧Residing with taxpayer ‧Not residing with taxpayer | 76,000 38,000 38,000 19,000 | 76,000 38,000 38,000 19,000 |
| Dependent brother or sister allowance (each) | 33,000 | 33,000 |
| Single parent allowance | 120,000 | 120,000 |
| Disabled dependent allowance (each) | 66,000 | 66,000 |
| * Granted to a married person whose spouse does not have any assessable income; or to a person who, together with his or her spouse, have elected joint assessment. | ||
| Self-education expenses and concessionary deductions- maximum limits | 2013-14 (HK$) | 2012-13 (HK$) |
| Self-education expenses | 80,000 | 60,000 |
| Elderly residential care expenses | 76,000 | 76,000 |
| Home loan interest* | 100,000 | 100,000 |
| Mandatory contributions to recognized retirement schemes | 15,000 | 15,000 |
| Approved charitable donations | Tax deductible up to 35% of assessable income | Tax deductible up to 35% of assessable income |
| * 15 years of relief in total | ||