Personal tax is also among the lowest in the world.
Schedular System Hong Kong has a simple schedular system of tax, in which only specified types of income, namely profits, salaries and property rental income, are taxable. This is different from an income tax system, under which a person is subject to tax on his aggregate income from all sources. Only profits arising in Hong Kong from a trade, profession or business carried on in the territory are taxable. A company pays no tax in the territory on income derived from outside Hong Kong. To enhance certainty in the operation of the territorial source concept, we have also introduced an advance ruling service on source of profits.