Hong Kong government incentives map: tax concessions and funding
This page is based on public information as of 2026-10-06.
The table has two parts. The first is the three items a cross-border e-commerce seller meets directly: the BUD Fund, E-commerce Easy, and the two-tier profits tax. The second is the other sector concessions on the Inland Revenue Department profits tax page, one row each, with the rate and the year of assessment only.
Under nature of eligibility, automatic means a rate that applies when the conditions are met. Discretionary means funding that requires an application and institutional approval. This page does not decide whether a particular company qualifies.
Directly relevant to cross-border e-commerce
The detail is on three other pages. The BUD matching ratio, the cumulative cap, and the rule that a shell company does not count are on the BUD page. The rule that two-tier rates apply only to the nominated entity is on the connected-entities page. Whether profits arise in Hong Kong is on the territorial-source page.
| Item | Who it is for | Nature of eligibility | Legislative stage | As of |
|---|---|---|---|---|
| Item BUD Fund | Who it is for A non-listed enterprise registered in Hong Kong under the Business Registration Ordinance (Cap. 310) with a substantive business in Hong Kong | Nature of eligibility Discretionary: application and approval | Legislative stage Not legislation: government funding scheme, in operation | As of 2026-10-06 |
| Item E-commerce Easy (a BUD track) | Who it is for Same enterprises, and the measures are limited to mainland China and the ten ASEAN markets. HK$800,000 per project, HK$1 million cumulative per enterprise, counting toward the HK$7 million cap | Nature of eligibility Discretionary: application and approval | Legislative stage Not legislation: government funding scheme, in operation | As of 2026-10-06 |
| Item Two-tier profits tax | Who it is for The one nominated entity. For a corporation, 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder | Nature of eligibility Automatic if the conditions are met | Legislative stage Enacted and in force | As of 2026-10-06 |
Two-tier profits tax and connected entities.
Two-tier profits tax and territorial source.
This page sits under Tax in the service catalog.
Other sector concessions listed by the IRD
Each row below keeps the rate and the year of assessment. The 5% rate on qualifying intellectual property income applies to the concessionary portion, not to all intellectual property income.
| Item | Who it is for |
|---|---|
| Item Qualifying corporate treasury centre (half rate, from 2016/17) | Who it is for Qualifying corporate treasury centre |
| Item Qualifying aircraft lessor and manager (half rate, from 2017/18) | Who it is for Qualifying aircraft lessor and manager |
| Item Professional reinsurer and authorized captive insurer (half rate, from 2018/19) | Who it is for Professional reinsurer and authorized captive insurer |
| Item Specified insurer and licensed insurance broker company (half rate, from 2020/21) | Who it is for Specified insurer and licensed insurance broker company |
| Item Short-term or medium-term debt instruments issued before 1 April 2018 (half rate) | Who it is for Short-term or medium-term debt instruments issued before 1 April 2018 |
| Item Qualifying ship lessor and manager (0% or half rate, from 2020/21) | Who it is for Qualifying ship lessor and manager |
| Item Qualifying ship agent, ship manager and ship broker (0% or half rate, from 2022/23) | Who it is for Qualifying ship agent, ship manager and ship broker |
| Item Concessionary portion of qualifying intellectual property income (5%, years of assessment beginning on or after 1 April 2023) | Who it is for Concessionary portion of qualifying intellectual property income |
| Item Qualifying debt instruments issued on or after 1 April 2018 (0%) | Who it is for Qualifying debt instruments |
| Item Qualifying carried interest of a qualifying person (0%, from 2020/21) | Who it is for Qualifying person |
| Item Family-owned investment holding vehicle managed by a qualifying single family office (0%, from 2022/23) | Who it is for Family-owned investment holding vehicle managed by a qualifying single family office |
Which Hong Kong tax concessions and funding schemes exist, and which one do I qualify for?
In the public material, three items sit next to cross-border e-commerce: the BUD Fund and its E-commerce Easy track, which require an application and institutional approval, and the two-tier profits tax, which applies when the statutory conditions are met. For a corporation that is 8.25% on the first HK$2 million and 16.5% on the remainder, and only for the nominated entity. The Inland Revenue Department also lists sector rates for treasury centres, aircraft and ship leasing, insurance, the concessionary portion of intellectual property income, debt instruments, carried interest and single family offices. Whether a business qualifies depends on the "who it is for" line of each item. This page does not decide for a particular company.
What government funding can a cross-border e-commerce business apply for, what is the cap, and how is it calculated?
The BUD Fund matches 1 to 3: the government funds at most 25% of a project total approved expenditure, and the enterprise pays at least 75% in cash. The cumulative cap is HK$7 million per enterprise, including audit fees, across at most 70 projects. Each general application is capped at HK$800,000. At any one time, funding already approved plus funding still in progress must not exceed HK$800,000. Drawing the full HK$7 million means the enterprise itself puts in about HK$21 million, and the projects can only run one after another. E-commerce Easy is capped at HK$800,000 per project and HK$1 million cumulative per enterprise, counts toward the HK$7 million cap, and is limited to mainland China and the ten ASEAN markets. The guide lists categories of expenditure. It does not promise that a given expense will pass review.
If I open several Hong Kong companies, can each of them use 8.25%?
No. For a corporation the two-tier rates are 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder, and they apply only to the one nominated entity. A connected entity is one that controls more than 50%. A connected entity that is not nominated has its entire assessable profits charged at 16.5%. The BUD phrase "related enterprise" is a different test: 30% or more of the shares and the same nature of business. The two tests are not interchangeable.
How much tax does a Hong Kong company actually pay, and which profits are charged?
Hong Kong charges profits tax only on profits arising in Hong Kong. Offshore is not automatic: where the principal place of business is in Hong Kong and no business is carried on overseas, the profits are likely still chargeable in Hong Kong. The standard rate is 16.5% for a corporation and 15% for an unincorporated business. Under the two-tier rates, a nominated corporation pays 8.25% on the first HK$2 million and 16.5% on the remainder.
This page is based on public information as of 2026-10-06.