Hong Kong is a crypto haven for investors as there are no capital gain taxes. If you buy crypto today and sell it later, no taxes will be levied on the gain you have made. Hong Kong is also the “most crypto ready” country in the world, ahead of Switzerland and USA. The country also aims to be a crypto hub.
Do you have to pay crypto tax in Hong Kong?
There are no capital gain taxes on crypto in Hong Kong. Only businesses related to crypto activities have to pay taxes on their profits and income received in crypto currency is taxes as ordinary income.
When do you have to pay tax on crypto in Hong Kong?
Only if you are a business engaged in crypto related transactions or are receiving your salary/wages in crypto, there would be taxes levied on your profits and salary respectively.
What crypto transactions are taxable in Hong Kong?
Only profits of crypto related businesses and income received in crypto are taxable.
What are the Crypto Tax Rates in Hong Kong?
- AS PROFITS TAX
| Rates of tax | Where the two-tiered rates apply * (%) | Where the two-tiered rates do not apply (%) |
| Corporations: | ||
| First HKD 2 million | 8.25 | 16.50 |
| On the remainder | 16.50 | |
| Unincorporated businesses: | ||
| First HKD 2 million | 7.50 | 15.00 |
| On the remainder | 15.00 |
- AS INCOME TAX
| Net taxable income (HKD) | Percentage on excess (%) | |
| Over (column 1) | Not over | |
| 0 | 50,000 | 2 |
| 50,000 | 100,000 | 6 |
| 100,000 | 150,000 | 10 |
| 150,000 | 200,000 | 14 |
| 200,000 | 17 | |
Hong Kong Income Tax Brackets (2023)
| Net taxable income (HKD) | Percentage on excess (%) | |
| Over (column 1) | Not over | |
| 0 | 50,000 | 2 |
| 50,000 | 100,000 | 6 |
| 100,000 | 150,000 | 10 |
| 150,000 | 200,000 | 14 |
| 200,000 | 17 | |
Hong Kong Capital Gain Tax Rates (2023)
There are no capital gain tax rates in Hong Kong.
How is Tax Calculated on Cryptocurrency in Hong Kong?
Since there is no capital gains tax, the calculation of tax owed is very straight forward.
In case of a business, the profit tax rates are levied directly on your disclosed profits.
In case of salary or wage, personal income tax rate is levied directly on your income.
Is there any Crypto Tax Free in Hong Kong?
Most of the crypto transactions in Hong Kong are tax free.
Crypto Tax in Hong Kong – FAQs
Do you have to pay tax when you buy crypto in Hong Kong?
No, you don’t have to pay tax when you buy crypto in Hong Kong
Do you have to pay tax when you sell crypto in Hong Kong?
No, you don’t have to pay tax when you sell crypto in Hong Kong
Do you have to pay tax when transferring crypto in Hong Kong?
No, you don’t have to pay tax when transferring crypto in Hong Kong
Do you have to pay tax when spending crypto in Hong Kong?
No, you don’t have to pay tax when spending crypto in Hong Kong
Is swapping crypto taxable?
No, swapping crypto is not taxable.
How much tax on crypto gains in Hong Kong?
AS PROFITS TAX
| Rates of tax | Where the two-tiered rates apply * (%) | Where the two-tiered rates do not apply (%) |
| Corporations: | ||
| First HKD 2 million | 8.25 | 16.50 |
| On the remainder | 16.50 | |
| Unincorporated businesses: | ||
| First HKD 2 million | 7.50 | 15.00 |
| On the remainder | 15.00 |
AS INCOME TAX
| Net taxable income (HKD) | Percentage on excess (%) | |
| Over (column 1) | Not over | |
| 0 | 50,000 | 2 |
| 50,000 | 100,000 | 6 |
| 100,000 | 150,000 | 10 |
| 150,000 | 200,000 | 14 |
| 200,000 | 17 | |
How do I avoid capital gains tax on crypto in Hong Kong?
There is no capital gain tax in Hong Kong.
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.