How Is Directors’ Remuneration Taxed in Hong Kong?

Director remuneration is classified as Director’s Fee or Director’s Salary.

• Director’s Fee: Paid for board duties under a board resolution, taxable as income regardless of where they perform their duties, must be reported in the Employer’s Return, no MPF contributions required.
• Director’s Salary: Paid under an employment contract, taxable as income, reported in Employer’s Return, MPF contributions required unless exempt.
• Approval requirements for both are subject to the company’s Articles of Association.