If you’re a U.S. citizen living in Hong Kong, you might feel overwhelmed by multiple tax systems. Understanding Hong Kong tax filing requirements for U.S. expats can help you stay compliant and keep more of your income. Hong Kong uses a territorial system where only income sourced in the territory is taxable. That means salaries, profits, and rental income are taxed, but dividends, interest, and capital gains aren’t. Hong Kong caps salaries tax at 17% with a flat 15% standard rate, while your U.S. obligations may include Form 1040, the foreign earned income exclusion (up to $130,000 for 2025), and FinCEN Form 114. Good news, with a clear roadmap you can breeze through each deadline and avoid costly mistakes.

Key takeaway: Keeping up with both Hong Kong and U.S. filings might seem like juggling two passports, but a step-by-step approach turns it into a manageable routine.

Understand your Hong Kong taxes

Salaries tax basics

Hong Kong levies salaries tax on employment income only if it’s sourced here. You’ll choose between:

  • A progressive scale from 2% to 17%
  • A flat 15% standard rate

A 2023 Inland Revenue Department bulletin found that over 90% of filers opt for the progressive scale.

Other tax categories

  • Profits tax applies if you run a sole proprietorship or freelance business, at 15%.
  • Property tax is 15% of your net assessable rental value.
  • You and your employer each contribute 5% of monthly income to the Mandatory Provident Fund (MPF), capped at HK$1,500.

Exempt and deductible items

Only Hong Kong–sourced income is taxable here. Foreign-sourced income stays outside the system. You can subtract MPF contributions, charitable donations, and qualifying expenses (see hong kong specific tax deductions for expats). To confirm your residency status, visit Hong Kong tax residency rules for U.S. expats.

Meet filing deadlines

Tax year and due dates

Hong Kong’s tax year runs April 1 to March 31. In early May the Inland Revenue Department issues individual returns, which you must file within one month. If you don’t receive your notice by July 31, notify the IRD within seven days.

Extensions and penalties

  • Request an extension before the original due date (often up to September)
  • Late filing can trigger a HK$25,000 fine plus a 5% monthly surcharge
  • Failing to file may lead to further action under hong kong tax compliance for americans

For full details on deadlines and extension procedures, see hong kong tax return deadlines for expats.

Handle U.S. expat obligations

Claim the foreign earned income exclusion

To avoid double taxation, you can exclude up to $130,000 of your Hong Kong-sourced earnings in 2025 by filing IRS Form 2555. A 2024 IRS summary shows that nearly 80% of U.S. expats use this exclusion. For an overview of how Hong Kong taxes affect your U.S. return, check out u.s. expat tax implications in hong kong.

Report foreign financial accounts

If your aggregate foreign account balance exceeds $10,000 at any point, file FinCEN Form 114 (FBAR). Penalties for non‐willful failure can reach $10,000 per form.

Prevent double taxation

There’s no tax treaty between the U.S. and Hong Kong, so you’ll rely on:

  • The foreign earned income exclusion (Form 2555)
  • The foreign tax credit (Form 1116)

See U.S. expat tax credits in Hong Kong for more on credits.

Plan your next steps

  1. Gather Hong Kong–sourced income documents and MPF statements.
  2. File your Hong Kong return within one month of issuance, or request an extension.
  3. Complete your U.S. Form 1040, claim FEIE on Form 2555, and file FBAR by April 15 (automatic extension to June 15).
  4. Use IRS Form 1116 if you paid Hong Kong tax and need a foreign tax credit.
  5. Review your situation annually—rules change and deadlines may shift (learn more at Hong Kong tax planning for U.S. expats).

You’ve got this. With a clear plan, you’ll stay compliant and focus on enjoying life in Hong Kong rather than worrying about paperwork.

Frequently asked questions

What counts as Hong Kong sourced income?

Income arising from services performed, business carried on, or property rented in Hong Kong is taxable here. Overseas earnings remain exempt.

When is FBAR due for U.S. expats?

FBAR (FinCEN Form 114) is due April 15, with an automatic extension to October 15 if you miss the initial deadline.

What deductions can I claim in Hong Kong?

You can deduct MPF contributions, charitable donations, self-education expenses, and home loan interest. For a full list, see Hong Kong specific tax deductions for expats.