Salaries tax is calculated in Hong Kong dollars. If a taxpayer receives chargeable income or incurs deductible expense in foreign currency, he/she has to report an equivalent amount of the income or expense in Hong Kong dollars in his/her tax return.
The average exchange rates of major currencies are listed below. Both buying rates and selling rates are included. Buying rate is used to convert chargeable income received in foreign currency into Hong Kong dollars, whereas selling rate is used to convert deductible expense paid in foreign currency into Hong Kong dollars.