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Hong Kong Tax Calculation:
Tax calculation based on Hong Kong progressive tax rates for the current tax year.
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Hong Kong uses a progressive tax system for salaries tax with a standard rate option. Tax is calculated at progressive rates on net chargeable income or at a standard rate on net income, whichever is lower.
The calculator uses Hong Kong's progressive tax rates:
First HKD 50,000 at 2%
Next HKD 50,000 at 6%
Next HKD 50,000 at 10%
Next HKD 50,000 at 14%
Remainder at 17%
Maximum tax payable limited to standard rate of 15% on total income
Explanation: The calculator applies progressive tax rates and compares with the standard rate, selecting the lower amount.
Details: Accurate tax estimation helps individuals and businesses plan their finances, meet tax obligations, and avoid penalties for underpayment.
Tips: Enter your annual income in HKD. The calculator will estimate your tax liability based on Hong Kong's progressive tax system with standard rate cap.
Q1: What is the standard tax rate in Hong Kong?
A: The standard tax rate is currently 15% on net income, which serves as the maximum tax payable under the progressive system.
Q2: Are there any tax-free allowances in Hong Kong?
A: Yes, Hong Kong offers various allowances and deductions including basic allowance, married person's allowance, and dependent allowances.
Q3: When is the tax filing deadline in Hong Kong?
A: Typically, tax returns must be filed by the first working day of May each year, with payment due in January of the following year.
Q4: Does this calculator include all deductions?
A: No, this provides a basic estimate. Actual tax liability may vary based on individual circumstances and available deductions.
Q5: Is foreign income taxed in Hong Kong?
A: Hong Kong operates on a territorial basis, generally only taxing income arising in or derived from Hong Kong.