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United Arab Emirates vs Hong Kong
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇦🇪 United Arab Emirates
vs
🇭🇰 Hong Kong
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0%
No personal income tax; unlikely to change short-term
No change
2–17%
Stable; simple territorial system maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5%
5% stable; GCC coordination maintained
No change
0%
No VAT
No change

Corporate Tax Rate

Corporate Tax Rate
9%
Corporate tax compliance and reporting maturing
No change
8.25–16.5%
Domestic minimum top-up tax (DMTT) for Pillar Two groups
No change

Capital Gains Tax

Capital Gains Tax
0%
No CGT; free zone benefits under review for Pillar Two
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~17.5%
Emiratisation targets affecting employer costs
No change
~10%
MPF review ongoing; voluntary contributions encouraged
No change
State, Regional & Local Taxes

🇦🇪 United Arab EmiratesEmirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

🇭🇰 Hong KongNo Sub-Regional Tax Variation

Hong Kong is a Special Administrative Region with a simple, low-tax structure. There are no sub-regional taxes. Profits tax applies only to profits arising in or derived from Hong Kong (territorial basis). Property rates are charged at ~5% of assessed rental value. Estate duty was abolished in 2006. Stamp duty on property has been progressively modified since 2022 to cool/stimulate the market. There is no VAT, capital gains tax, or withholding tax on dividends.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

United Arab Emirates vs Hong Kong: Key Tax Differences (2026)

💰 Income Tax: 🇭🇰 Hong Kong has a higher top income tax rate (0% vs 2–17%). 🇦🇪 United Arab Emirates is more favourable for high earners.

🛒 VAT/Sales Tax: United Arab Emirates has a higher consumption tax (5% vs 0%).

🏢 Corporate Tax: 🇦🇪 United Arab Emirates offers a lower corporate rate (9% vs 16.5%), which can influence business location decisions.

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