Hong Kong profits tax: two-tiered rates and offshore claims explained

A Hong Kong corporation pays 8.25% on the first HK$2 million of assessable profits and 16.5% above that. Only Hong Kong-sourced profits are taxed, which is why offshore claims and clean records matter.

Alexia M.Comparisons and market guides editor

Published: 25 June 2026
Reading time: 2 min read

"Hong Kong corporate tax rate for non residents" sits in Google's suggestions next to "Hong Kong corporate tax rate 2026". The short answer is the same for everyone. The longer answer depends on where your profits come from.

The rates

Assessable profits	Corporation rate
First HK$2 million	8.25%
Above HK$2 million	16.5%

For HK$3 million of assessable profits: HK$2 million at 8.25% is HK$165,000, plus HK$1 million at 16.5% is HK$165,000. Total HK$330,000. Only one entity among connected entities can use the 8.25% tier.

Territorial basis

Hong Kong taxes profits that arise in or are derived from Hong Kong. A trading company that buys from a factory in Vietnam and sells to a buyer in Germany, with the deal negotiated and concluded outside Hong Kong, may have offshore profits. The IRD looks at the operations that produced the profit, not where the company is registered or where the money lands.

Why records decide offshore claims

The IRD asks for evidence: who negotiated, where contracts were signed, where staff worked, how goods moved. Payment records help tell the story. Clean records show buyer, supplier, currency and dates for each trade. A mixed account with personal and business payments makes the claim harder to support.

Practical steps

Keep each trade's contract, invoices, shipping documents and payments together.
Pay suppliers and receive from buyers in the company's own name.
Record where each deal was negotiated as it happens.
Get advice from a Hong Kong tax representative before filing an offshore claim.

Paying into Hong Kong: the local rail

What	Detail
Local rail	Faster Payment System (FPS)
Run by	Hong Kong Interbank Clearing Limited, under the HKMA
Settlement	Seconds, 24/7, in HKD or CNY

Source: HKMA: Faster Payment System. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

Rivet keeps every receipt and payout on one ledger, with the counterparty, currency, amount and date, and exports statements and receipts for your accountant. USD comes on Starter, EUR and GBP on Growth, HKD and 25 more currencies on Scale. Check our eligibility list for Hong Kong companies. Rivet is not a bank; regulated partner institutions hold the funds. See Hong Kong company bank account opening.

Questions people ask

What is the Hong Kong corporate tax rate for non-residents?

The same two-tiered rates apply to any company carrying on business in Hong Kong with Hong Kong-sourced profits, wherever its owners live.

Does Hong Kong tax foreign income?

Hong Kong uses a territorial basis. Profits sourced outside Hong Kong are generally not taxed. A refined foreign-sourced income exemption regime covers certain passive income received by multinational group entities.

How do I make an offshore claim?

You claim on the profits tax return and support it with evidence of where profit-generating activities happened: contracts, emails, travel records, and where staff and decision makers were.

When is the profits tax return due?

The IRD issues returns in April each year. The due date depends on the company's accounting date code; extensions apply to tax representatives under the block extension scheme.

Sources

Written by

Alexia M.

Comparisons and market guides editor

Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.