When you search for Hong Kong tax treaties with the U.S., you’ll find that no bilateral income tax agreement exists. Yet Hong Kong maintains 52 tax treaties with other jurisdictions (all ratified unless noted). For you, a U.S. citizen living in Hong Kong, that gap matters when you file your U.S. and local returns.

The U.S. taxes your worldwide income, so without a treaty you still owe federal tax on earnings from your Hong Kong salary, investments, or business profits. The good news, you can ease double taxation using the foreign earned income exclusion, the foreign tax credit, and careful compliance with both sets of rules.

Key idea: You won’t find a comprehensive treaty between Hong Kong and the U.S., but you can minimize overlap by using IRS relief provisions and staying on top of filing deadlines.

Explore Hong Kong treaties

Hong Kong has built an extensive network of agreements to avoid double taxation with 52 countries, including major economies like the U.K., Singapore, and Australia. These pacts typically cover wages, dividends, interest, and royalties, reducing withholding rates and clarifying residency for tax purposes. In addition:

  • Seven Tax Information Exchange Agreements (TIEAs) allow data sharing (as of March 2014).
  • AEOI under the Common Reporting Standard links Hong Kong with over 80 jurisdictions (as of April 2025).
  • There is no estate duty or gift tax in Hong Kong (abolished in 2006).
  • Only income sourced in Hong Kong is taxable, with top rates around 17 percent.

These treaties and exchange accords streamline reporting and mitigate double taxation for most expats. To understand how Hong Kong defines your residency, see our Hong Kong tax residency and domicile rules.

Understand U.S. treaty gap

Despite its robust treaty network, Hong Kong has no bilateral income tax agreement with the U.S. Instead, two key exchange pacts exist:

  • A Tax Information Exchange Agreement signed in March 2014.
  • A Model 2 intergovernmental agreement (IGA) adopted in November 2014 to support FATCA compliance by Hong Kong financial institutions.

These deals help the IRS and the Hong Kong Inland Revenue Department share data, but they do not cut your U.S. tax rate on Hong Kong earnings. As a U.S. person, you must report all worldwide income, including your Hong Kong salary or business profits. Some U.S. states may not honor certain credits, so review your state rules if you have local filing duties. For more on U.S. implications, check our U.S. expat tax implications in Hong Kong.

Use U.S. tax relief

Good news, you can shield a significant portion of your Hong Kong income through IRS relief tools:

  1. Foreign earned income exclusion (FEIE): If you meet the bona fide residence or physical presence test, you can exclude up to $130,000 of foreign earned income (limit adjusts annually) by filing Form 2555.
  2. Foreign tax credit (FTC): Use Form 1116 to credit Hong Kong taxes you’ve paid, dollar for dollar, against your U.S. liability. This is useful for income above the FEIE threshold or for passive income like dividends and interest.
  3. Local deductions: Hong Kong allows certain deductions for expats, such as self-education expenses and home loan interest. Learn more on our Hong Kong specific tax deductions for expats.

Balancing the FEIE and FTC often yields the best outcome. We recommend running numbers both ways to see which trims your tax bill most.

Meet compliance requirements

Filing accurately and on time in both jurisdictions keeps you in good standing:

  • U.S. return: File Form 1040 by April 15 (automatic extension to Oct 15).
  • FBAR (FinCEN 114): Report if your aggregate foreign accounts exceed $10,000 at any point during the year.
  • FATCA (Form 8938): Disclose specified foreign assets when thresholds are met.
  • Hong Kong return: Submit your Salaries Tax return and pay any tax due (deadlines vary, see Hong Kong tax return deadlines for expats).
  • Provisional payments: If you owe over HKD 10,000, Hong Kong splits your tax into two installments (January and April).

For a full checklist of U.S. and Hong Kong requirements, explore our Hong Kong tax filing requirements for U.S. expats or dive into Hong Kong tax compliance for americans.

Recap and next steps

  • Hong Kong has 52 tax treaties but no DTA with the U.S.
  • Information sharing occurs via TIEA and FATCA IGA, not rate relief.
  • Use the FEIE (up to $130,000) and the FTC (Form 1116) to cut U.S. tax on your Hong Kong income.
  • File your U.S. forms (1040, FBAR, 8938) and your Hong Kong return by the deadlines.

Next step: Map out your income streams, gather your Hong Kong tax documents, and plan your U.S. relief elections. We’re here to help you file confidently and keep more of your hard-earned money at American Pacific Tax.

Frequently asked questions

Is there a tax treaty between Hong Kong and the U.S.?
No, Hong Kong and the U.S. do not have a bilateral income tax treaty. They exchange data through a TIEA and a FATCA intergovernmental agreement, but no DTA provides rate relief.

How does the foreign earned income exclusion work?
If you qualify under the bona fide residence or physical presence test, you can exclude up to $130,000 of foreign earned income (adjusted annually) by filing IRS Form 2555.

Do I need to file an FBAR if I live in Hong Kong?
Yes, if the total value of your foreign financial accounts exceeds $10,000 at any time, you must file FinCEN Form 114 (FBAR) by the U.S. deadline (April 15, with an automatic extension to Oct 15).