Services / Santo Accountancy / Profits tax estimator
Santo Accountancy · Hong Kong tax engine
Profits tax estimator
Move the figures and watch the tax change: the two-tiered rates, losses brought forward, profits not chargeable in Hong Kong, and the year's one-off reduction — with every line of the calculation shown underneath.
Two-tiered rates on
Standard — all profits in Hong Kong
HK$ 0
Effective rate 0%
With your claim
HK$ 0
Effective rate 0%
Estimated tax saving
HK$ 0
Standard less claim, after losses and the reduction.
Where the profit goesWith your claim
Tax payable HK$ 0
Onshore income after tax HK$ 0
Not chargeable HK$ 0
Effective rate as profits growHover to read · tap to set profits
The calculation, line by line
| Line | Rate | Standard | With claim |
|---|---|---|---|
| Assessable profits | — | ||
| Less: not chargeable in Hong Kong | nil | ||
| Less: losses brought forward used | — | ||
| Net chargeable profits | — | ||
| Tier 1 — first HK$2,000,000 | |||
| Tier 2 — the remainder | |||
| Tax before reduction | — | ||
| Less: one-off reduction | — | ||
| Profits tax payable | — | ||
| Effective rate on assessable profits | — |
About these figures
- Two-tiered rates apply from the 2018/19 year of assessment: for corporations 8.25% on the first HK$2 million of assessable profits and 16.5% on the rest; for unincorporated businesses 7.5% and 15%.
- Among connected entities, only one may elect for the two-tiered rates; the others pay the standard rate on all their profits.
- Hong Kong taxes profits arising in or derived from Hong Kong. Whether profits are offshore depends on the facts of how they were earned, and a claim has to be supported with evidence.
- Under the FSIE regime, certain foreign-sourced dividends, interest, disposal gains and IP income received in Hong Kong by multinational group entities are taxable unless the exemption conditions — such as economic substance — are met.
- Provisional tax for the following year is normally charged on the same profits, so a higher bill this year usually means a higher provisional payment too.
- This is an estimate, not advice. Adjustments to arrive at assessable profits, group relief and your own facts can change the answer — talk to us before relying on it.
See also Tax, the filing deadlines and when the IRD writes to you.
Want these numbers checked against your accounts? Send them to us and we will tell you where your company really stands.