Good news (for many expats): Hong Kong doesn’t tax capital gains and abolished estate duty in 2006. That means your gains stay yours. But when it comes to salaries tax, residency matters more than citizenship. At American Pacific Tax, we often guide clients through these steps to make sure they pay only what they owe. Knowing the hong kong tax residency and domicile rules can help you plan ahead. You’ll avoid surprises at filing time.

Key idea: Spending at least 180 days here in a tax year or 300 days over two years typically makes you a Hong Kong tax resident for treaty benefits. Local taxation hinges on the source of your income.

Hong Kong tax residency and domicile rules

Hong Kong uses a territorial system, so it taxes only income sourced here. Under domestic law, your residence, domicile, or citizenship do not affect your liability to salaries tax (only where your income arises). However, to claim relief under a Comprehensive Double Taxation Agreement (CDTA), you must meet specific residency criteria.

Residency criteria for salaries tax

Your salaries tax liability depends on where you earn your income. If you receive pay from a Hong Kong office or render services here for more than 60 days in a tax year, you must file a return and pay salaries tax on that income. Benefits in kind are generally non-taxable unless specified. To learn more about filing requirements, see Hong Kong tax filing requirements for U.S. expats.

Residency for treaty benefits

For treaty purposes, you are considered a Hong Kong tax resident if you ordinarily reside here or you stay more than 180 days in a year of assessment, or more than 300 days over two consecutive years (with one being the relevant tax year). This rule helps determine eligibility for relief under the U.S.-Hong Kong treaty. See Hong Kong tax treaties with the U.S. for details.

Domicile basics explained

Domicile refers to your permanent home, often where you intend to return after time abroad (for example, the U.S. for most Americans). In Hong Kong, your domicile does not affect salaries tax liability or treaty residency tests. It may matter for U.S. estate taxes, but under local law it plays no role in your Hong Kong tax filings.

Certifying your resident status

Don’t worry, applying for proof of your residency is simpler than it sounds. You’ll need an official Certificate of Resident Status from the IRD to claim many treaty benefits.

Applying for a certificate of resident status

To get a Certificate of Resident Status, include the self-certification section on your BIR60 return or submit a written application to the Inland Revenue Department. The IRD aims to issue the certificate within 21 working days of a properly completed application (unless they need more information).

Documents you’ll need

Gather these items before you apply:

  • A copy of your Hong Kong Identity Card (HKID), which serves as your Taxpayer Identification Number
  • Proof of days spent in Hong Kong (for example, flight itineraries or hotel invoices)
  • An employment contract or recent payslips showing your workplace location
  • The completed self-certification form from your tax return

What this means for you

With your residency status confirmed, you can optimize both your Hong Kong and U.S. tax filings (for more on the U.S. side, see U.S. expat tax implications in Hong Kong).

Benefits under U.S.-Hong Kong treaty

The U.S.-Hong Kong CDTA can prevent double taxation on your salaries and pensions. By proving your Hong Kong residency, you may qualify for reduced withholding or exemptions on certain income. For full details, see Hong Kong tax treaties with the U.S..

Claiming your foreign tax credit

After you pay salaries tax (capped at a 15% standard rate on net income), you can use that amount as a foreign tax credit on your U.S. return (Form 1116). This credit can offset your U.S. tax liability on the same income. Learn more at U.S. expat tax credits in Hong Kong.

Meeting your local filing deadlines

Your Hong Kong tax return for the year ending March 31 is typically due in early June. If you need more time, the IRD can grant an extension electronically. Check Hong Kong tax return deadlines for expats for guidance.

Quick recap and next step

  • Check if you meet the 180/300-day rules for treaty residency, and the 60-day rule for salaries tax
  • Gather your HKID, proof of stay, and income documents, then apply for a Certificate of Resident Status
  • Use that certificate to claim treaty relief in Hong Kong and foreign tax credits on your U.S. return

Pick one step today to stay on track with your filings, you’ve got this.

Frequently asked questions

What is the difference between tax residency and domicile?
Tax residency is based on where you stay (180 days in one year or 300 days over two). Domicile refers to your permanent home (usually the U.S. for Americans), but it does not affect your Hong Kong salaries tax liability.

How do I apply for a Certificate of Resident Status?
Include a self-certification section on your BIR60 return or submit a written application to the IRD. You’ll need your HKID copy, proof of stay, and proof of employment. The IRD aims to issue the certificate within 21 working days.

Will my Hong Kong domicile affect my U.S. estate taxes?
Your Hong Kong domicile may factor into U.S. estate planning, but Hong Kong abolished estate duty in 2006. You still need to report worldwide assets to the IRS under American rules.