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Withholding tax in Hong Kong 2026
Hong Kong operates almost no withholding: dividends, interest and ordinary service payments leave gross, whoever receives them.
The exceptions are royalties for Hong Kong use of intellectual property — an effective 4.5% on the gross (15% when paid to associates) — and performance fees of visiting entertainers and sportspeople.
At a glance
- top rate
- 15% (royalties to associated non-residents)
- entry band
- 0% on dividends and interest
- tax year basis
- Withheld when paid
- filing deadline
- Final for royalties; agents can be assessed for principals
- residency basis
- Hong Kong-source payments to non-residents
- regime flag
- Deemed profit of 30% x 15% rate = the 4.5% effective royalty charge
Rates
Withholding on non-residents (2026/27)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Dividends, interest, service fees and rents — no withholding exists |
| 4.5% | Gross royalty (30% deemed profit at 15%) | Royalties for Hong Kong use of patents, trademarks, copyrights, films |
| 15% | Gross royalty (100% deemed profit) | The same royalties paid to associated non-residents |
| Progressive/standard rates | Gross fees | Non-resident entertainers and sportspeople performing in Hong Kong |
Thresholds & allowances
- Exempt transactionsBroker-intermediated
Non-residents' securities, futures, foreign-exchange and deposit transactions through authorized institutions are profits-tax exempt
Residency
Residency trigger
Payers withhold only in the royalty and entertainer cases; Hong Kong agents of non-residents may be assessed and can retain funds for the tax.
Non-resident treatment
Treaty relief and the territorial source rules mean most cross-border flows simply never meet Hong Kong tax; filing duties for taxable Hong Kong income mirror residents'.
Notes
- The 15% associate rate is an anti-avoidance measure against routing intellectual property offshore after deducting the royalty in Hong Kong.
- There is no branch remittance tax and no equivalent of the European relief-at-source directives to transpose.
- Property tax at 15% (on 80% of rent) is the non-resident landlord's charge, filed rather than withheld.
- The 4.5%/15% effective royalty rates assume the standard 15% profits-tax rate — where the payer's two-tier 7.5% band applies, the effective charge on the first slice halves.
FAQ
What does Hong Kong withhold on payments abroad?
Almost nothing — 0% on dividends, interest and service fees; only royalties for Hong Kong use of intellectual property (4.5% effective, 15% to associates) and entertainer fees are withheld.
Do non-resident investors pay Hong Kong tax on trading?
No — 0%; securities, futures and foreign-exchange transactions through authorized Hong Kong institutions are specifically exempt from profits tax for non-residents.
Figures: tax year 2026/27 (April–March), compiled from public sources. Not tax advice.