Hong Kong operates a territorial tax system — only income sourced in Hong Kong is taxable. Salaries tax is levied on a progressive scale: the first HKD 50,000 at 2%, then 6%, 10%, 14%, and 17% on the remainder, capped at the standard rate of 15% on net assessable income (after deductions). There is no capital gains tax, no VAT/GST, no withholding tax on dividends, and no estate duty. For work visa holders, your employment income is considered Hong Kong-sourced if your services are rendered in Hong Kong. If you travel frequently, the 60-day rule may apply: income from services rendered outside Hong Kong for more than 60 days in a year of assessment may be exempt. Key deductions include mandatory provident fund (MPF) contributions (capped at HKD 18,000 per year), self-education expenses, charitable donations, and home loan interest. New arrivals should file their first tax return (BIR60) within the specified deadline, typically 1-2 months after receiving it from the Inland Revenue Department.