Hong Kong taxation adopts the "territorial origin principle" and if the taxpayer engages in the profit-making activity in Hong Kong is not located in Hong Kong, he is not required to pay tax in Hong Kong, but needs to apply to the Hong Kong Inland Revenue Department for tax exemption or prior ruling. "Low tax rate, encourage business" is the Hong Kong government has always pursued the policy, Hong Kong in addition to many countries and regions cannot match the advantages, but also in terms of tax for enterprises to provide the most ideal business environment, to help investors expand their business. Double taxation arises when two or more territories tax the same income or profits of a taxpayer. The Hong Kong Government has signed double taxation avoidance agreements with many countries and regions around the world, clearly delineating the taxation rights of both parties to the agreement, so as to reduce the chances of double taxation for Hong Kong residents or corporations and residents or corporations of the parties to the agreement.

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The following taxes are levied under the Inland Revenue Ordinance (Cap. 112). 

Salaries tax

Salaries tax is the tax paid by taxpayers on income earned from working in Hong Kong. The Government will provide various exemptions to salaries tax payers, which will be taxed at a progressive rate after deducting the allowances. However, the salaries tax levied will not exceed the tax levied at the standard rate (i.e. a fixed percentage of the taxable income not deductible). 

Profits tax

Profits tax is the tax paid by taxpayers on the profits derived from doing business in Hong Kong. With effect from the year of assessment 2018/19, Hong Kong's profits tax was changed to a two-tiered system, halving the tax rate of the first $2,000,000 of assessable profits[2]. 

Property tax

Property tax is the tax paid by taxpayers to hold a property in Hong Kong and rent it out for profit. Property holdings only are not subject to property tax, but are still subject to rates, land tax or rent.