How are individuals taxed in Hong Kong, and who must file annual tax returns in Hong Kong?

Individuals are taxed at a progressive rates on their net chargeable income (i.e assessable income after deductions and allowances) starting at 2% and ending at 17% or at a standard rate of 15% on net income (i.e. income after deductions), depending on which is lower. 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $10,000 per case. Due to Hong Kong’s small population and white collar labor force (as compared with mainland China), local government requires individual taxpayers (rather than companies) to file an annual tax return with Inland Revenue Department (IRD).