A Straightforward Tax System

Another compelling reason to move to Hong Kong is that it’s home to one of the lowest tax rates in the world. The territory’s tax structure is straightforward and uncomplicated, with a progressive rate starting at 2% and capping at 17% on net income after deducting the basic allowance of HK$132,000, or at a standard rate of 15% on net income, whichever is lower. You’ll also receive additional tax allowances if you’re married, have children, or are single parents. Moreover, only income earned in Hong Kong is taxable in the city.

There is no estate duty, which is sometimes referred to as inheritance tax in other countries, and no Value-added Tax (VAT) either, making the city a haven for shoppers. There are no withholding taxes levied on dividends and interest.

Hong Kong is a free port, meaning there are no tariffs on general imports. However, duties apply to liquors, tobacco, hydrocarbon oil, and methyl alcohol, with duties charged at specific rates per unit quantity.