How is forex trading taxed in Hong Kong in 2026?

TaxesLast verified 2026-05-25Reviewed by editorial team

Quick Answer

How is forex trading taxed in Hong Kong in 2026?

Hong Kong does not levy capital gains tax on personal forex or CFD profits. Casual retail traders pay nothing. Only profits earned in the course of a trade or business (treated as carrying on a business of dealing in securities or FX) fall within profits tax — 8.25% on the first HKD 2 million and 16.5% above, under the two-tier regime.

No capital gains tax — Inland Revenue Ordinance (Cap 112) does not tax capital profits.
Two-tier profits tax: 8.25% up to HKD 2 million; 16.5% above (corporates) or 7.5% / 15% (unincorporated businesses).
Inland Revenue Department applies the "badges of trade" test — frequency, financing, holding period — to distinguish capital from trading income.
Salaries tax and profits tax are mutually exclusive — only one applies per income source.
Filing: BIR60 (individuals) or BIR51 / BIR52 (businesses), due roughly 1 month after issue (May).

Last verified: 25 May 2026 by FX-Brokers.info editorial team

How this answer was verified

Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
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What is the best forex broker for Hong Kong traders in 2026?

For Hong Kong traders the top picks are Saxo Hong Kong (SFC Type 3, Danish banking parent), Interactive Brokers Hong Kong (full multi-asset access) and IG Hong Kong. All three hold the SFC Type 3 Leveraged Foreign Exchange Trading licence required for retail FX.

What is the SFC Type 3 Leveraged Foreign Exchange Trading licence in Hong Kong?

SFC Type 3 is the Hong Kong licence required to deal in leveraged foreign exchange contracts with retail clients. It is the standalone licence regulating retail FX brokers — separate from Type 1 (dealing in securities) and Type 2 (dealing in futures). Retail leverage is capped at 20:1.

How is forex trading taxed in Europe?

Forex trading tax treatment varies significantly across EU countries. Germany taxes CFD profits at a flat 25% capital gains rate. France treats forex profits as commercial income (up to 45% marginal). The UK taxes most retail forex gains as capital gains (18-24% since 30 October 2024). Spread betting is tax-free in the UK and Ireland only.

Article: Forex Brokers in Singapore 2026 — MAS Type 3 Licence vs Offshore Solicitation

Singapore retail forex is restricted to MAS-licensed Capital Markets Services holders dealing in leveraged foreign exchange. The MAS Financial Institutions Directory is the canonical register. Retail leverage is capped at 20:1 on Specified Investment Products. Offshore solicitation is a real risk in 2026.

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How is forex trading taxed in Hong Kong in 2026?

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