Expat Tax Residency in Hong Kong Confirm the cited source.

Hong Kong taxes individuals on a strict territorial and source basis under the Inland Revenue Ordinance (Cap. 112). A person's residence, domicile, or citizenship is not relevant in determining liability under domestic law -- what matters is where the income arises or is derived from. For employment income, this means salaries tax attaches to any employment exercised in Hong Kong, regardless of whether the employee is a Hong Kong permanent resident, a recent arrival, or a short-term visitor.

01Does Hong Kong tax residents on worldwide income?

No. Hong Kong does not impose tax on foreign-source income for individuals. Salary earned for services performed entirely outside Hong Kong is not chargeable to salaries tax, even if it is remitted into a Hong Kong bank account. Foreign pensions, foreign rental income, overseas dividends, and foreign capital gains are all outside the Hong Kong tax net for individuals. There is no capital gains tax at all, for either residents or non-residents. This source-based framework is confirmed in IRD's guide for people coming to work in Hong Kong (Pamphlet PAM42E) and is summarised in PwC's Worldwide Tax Summaries for Hong Kong SAR [citation:pwc-hk-personal].

02What income is subject to salaries tax, and how does the 60-day rule work?

Salaries tax is charged on income arising in or derived from a Hong Kong employment, a Hong Kong office, or a Hong Kong pension under Section 8 of the Inland Revenue Ordinance. For a Hong Kong employment, services rendered inside Hong Kong during visits that do not exceed 60 days in total in the year of assessment (1 April to 31 March) are disregarded entirely -- the employee owes no salaries tax for that year [citation:ird-exemption-60day]. Day-counting is strict: a day counts even if the person is present in Hong Kong for only part of that day, so both the arrival date and the departure date each count as separate days [citation:ird-exemption-60day]. Exceeding 60 days by a single day removes the exemption for the entire year.

For a non-Hong Kong employment (where the contract was negotiated and entered into outside Hong Kong, the employer is resident outside Hong Kong, and remuneration is paid outside Hong Kong), the same 60-day rule applies as a gateway. If the threshold is exceeded, assessable income is apportioned by the ratio of days physically present in Hong Kong to total days in the year -- with one important mechanical difference: for the apportionment calculation, the day of departure from and the day of arrival in Hong Kong are counted together as a single day [citation:ird-exemption-60day]. This day-counting asymmetry between the 60-day gateway and the apportionment formula is a common source of error and should be verified with a qualified tax professional.

03How are salaries tax rates calculated -- progressive or standard?

Hong Kong uses a dual-rate system. Tax is calculated under both the progressive method and the standard-rate method, and the taxpayer pays whichever amount is lower [citation:govhk-tax-rates].

Under the progressive method, tax is levied on net chargeable income (assessable income minus deductions minus personal allowances):

Under the standard-rate method, tax is levied on net income (assessable income minus deductions, before personal allowances). From the 2024/25 year of assessment, a two-tiered standard rate applies: 15% on the first HKD 5,000,000 of net income, and 16% on any amount above that threshold [citation:govhk-tax-rates]. Before 2024/25, a single flat standard rate of 15% applied. The two-tier change primarily affects very high earners whose net income (before allowances) exceeds HKD 5 million.

The basic personal allowance for 2024/25 and 2025/26 is HKD 132,000 for a single taxpayer and HKD 264,000 for a married couple claiming the married person's allowance [citation:govhk-allowances]. Additional allowances are available for qualifying dependent children (HKD 130,000 per child), dependent parents and grandparents aged 60 or above (HKD 50,000 per qualifying dependant), and for persons with disabilities.

In practice, most salaried employees in Hong Kong pay tax under the progressive method. The standard rate cap becomes relevant for higher-income earners where the progressive rates would otherwise produce a liability above 15% of net income before allowances.

04What is a Certificate of Resident Status and when do expats need it?

Because Hong Kong taxes on source rather than residence, tax residency only matters when an expat wants to claim relief under one of Hong Kong's comprehensive double taxation agreements with a treaty partner. To do so, the individual asks the IRD to issue a Certificate of Resident Status using form IR1314B (form IR1314A applies to Mainland China claims) [citation:ird-cert-resident]. An individual qualifies as a Hong Kong resident for this purpose if they ordinarily reside in Hong Kong, or are present for more than 180 days in the relevant year of assessment, or more than 300 days across two consecutive years [citation:ird-cert-resident]. The IRD targets issuing the certificate within 21 working days of a complete application. Issuance does not by itself guarantee the treaty partner will grant relief.

05How do you file salaries tax and when is it due?

The Hong Kong year of assessment runs from 1 April to 31 March. The IRD issues the individual tax return, known as form BIR60, in early May following the year-end, and the return is normally due within one month of the issue date, with an automatic one-month extension when filed electronically [citation:pwc-hk-personal]. Employers separately file an employer's return reporting each employee's remuneration. After assessment, taxpayers usually pay both the tax for the year just ended and a provisional salaries tax payment toward the coming year. Late filing can trigger an estimated assessment, surcharges, and penalties, so meeting the BIR60 deadline matters [citation:pwc-hk-personal].

For further context on how Hong Kong's territorial system interacts with double-tax treaties and the Certificate of Resident Status, see the Hong Kong country overview. For guidance on how the 60-day rule and apportionment calculations apply in specific cross-border employment situations, consult the Hong Kong tax treaty relief page.

Individual circumstances -- including the classification of an employment as Hong Kong or non-Hong Kong, the correct day-count methodology, and eligibility for personal allowances -- are fact-specific. A tax professional registered with the Hong Kong Institute of Certified Public Accountants (HKICPA) can assess your exact position under current IRD practice.