Expense rules in Hong Kong.
All IRD rules: no VAT/GST, travel allowances and specific rules in Hong Kong.
Get started →Disclaimer: This country guide is provided for informational purposes only and does not constitute legal advice. Although we update it regularly, it may not reflect ongoing regulatory changes. Illizeo SA declines all responsibility for actions taken or not taken based on this content.
1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | Aucun | 100% deductible | Entertainment expense |
| Travel meals | Aucun | 100% deductible | Per diem cap |
| Accommodation | Aucun | 100% deductible | Receipt required |
| Fuel | Aucun | 100% deductible | Business records |
| MTR / bus / flight | Aucun | 100% deductible | Public transport |
| Taxi | Aucun | 100% deductible | Receipt required |
| Client gifts | Aucun | Limited | IRD reasonable limit |
| Parking | Aucun | 100% deductible | Receipt |
No VAT
HK is one of few hubs without VAT.
Profits Tax
Corporate standard rate.
Retention
IRD records: 7 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | HKD 3/km | By company | Standard practice |
| Motorcycle | HKD 1,50/km | By company | Reduced rate |
MNC practice
Private sector standard.
Records
Date, destination, km.
Taxi cheap
HK taxi very accessible.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| HK Island / Kowloon | HKD 500 | HKD 2,500 | HKD 3,000 |
| Senior executive | HKD 800 | HKD 4,000 | HKD 4,800 |
| Foreign — Singapore | HKD 800 | HKD 2,500 | HKD 3,300 |
| Foreign — Tokyo | HKD 900 | HKD 2,800 | HKD 3,700 |
| Foreign — London | HKD 1,500 | HKD 5,000 | HKD 6,500 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on invoice.
Simple tax
No fapiao/tax invoice needed.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| HK → EU | No HK VAT | — | HK company can recover EU VAT |
| France | Reciprocity (13th Dir.) | 30 Sept. N+1 | Via impots.gouv.fr |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| HK VAT for foreign | N/A | — | No HK VAT |
No HK VAT
HK has no VAT system.
Outbound
HK company recovers EU VAT via 13th Directive.
ROI
No VAT to recover in HK.
Industrialize your Hong Kong expenses with Illizeo.
No VAT, MNC per diem, simple tax system, multi-currency HKD↔USD↔EUR↔CHF: all the IRD rules above are natively integrated into Illizeo.
Book a demo