The taxation structure in Hong Kong is simple and the rate is relatively low. Income earned in Hong Kong is subject to a yearly salaries tax at progressive rates up to the prevailing maximum flat rate. The tax year runs from 1 April to 31 March. Salary, gratuity and allowances earned are subject to taxation. Employees as a non-resident working or holding an office in Hong Kong are liable to salaries tax but not all the incomes are chargeable. Incomes such as payment in lieu of notice, severance payment and long service payment are not chargeable.
