Anyone that joined the work environment needs to pay tax on their employment income. A tax year covers a period of 12 months commencing on 1st April and concluding on 31st March of the following year.

Salaries Tax Computation: calculated at progressive rates on your net chargeable income or at standard rate on your net income, whichever is lower.

Salaries Tax: chargeable on most but not all of the income from employment, offices and pension arising in or derived from Hong Kong.

Click here for details on Chargeable & Non-Chargeable Income and Deductions.

Net Chargeable Income =

Total Income - Deductions - Allowances

Net Chargeable Income =

Net Income - Allowances

Net Income =

Total Income - Deductions

Tax Reduction: applicable to profits tax, salaries tax and tax under personal assessment.

Year of Assessment

% of Tax Reduction

Maximum Per Case ($)

2017/ 2018



2018/ 2019



2019/ 2020*



  • Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2020-21 Budget.


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