Wednesday 27th February 2019: New personal and corporate tax incentives are among the measures announced in the Annual Budget issued by Financial Secretary Paul Chan earlier today.
They come in the form of a proposed one-off tax rebate of 75% or HK$20,000, whichever is lower, for salaries tax, tax under personal assessment and profits tax. The rebates will be applied to tax levied for the current financial year, 2018-19.
Mr Chan also proposed a waiver on Business Registration fees for 2019-2020, benefitting 1.4 million Hong Kong-registered business currently facing an annual cost of HK$2,250.
The Financial Secretary said the Budget placed emphasis on stabilising the economy, supporting enterprises, safeguarding jobs and strengthening livelihoods.
The proposed tax changes are as follows:
A summary of the allowances and deductions for 2019/20 is shown as below:
Allowances | 2018/19 onwards HK$ |
Basic Allowance | 132,000 |
Married Person Allowance | 264,000 |
Single Parent Allowance | 132,000 |
Child Allowance | 120,000 |
For each child born during the year | 120,000 |
Dependent Brother or Dependent Sister Allowance | 37,500 |
Dependant Parent and Dependant Grandparent Allowance
|
50,000 25,000 |
Additional Dependant Parent and Dependant Grandparent Allowance
|
50,000 25,000 |
Disabled Dependant Allowance | 75,000 |
Personal disability allowance | 75,000 |
Deductions | 2018/19 onwards HK$ |
Expenses of self-education | 100,000 |
MPF Contribution | 18,000 |
Home Loan Interest | 100,000; 20 Years |
Elderly Residential Care | 100,000 |
Approved Charitable Donations | 35% of income after deductions |
Income HK$ | Progressive tax rate | Progressive tax applicable to the band HK$ |
0-50,000 | 2% | 1,000 |
50,001-100,000 | 6% | 3,000 |
100,001-150,000 | 10% | 5,000 |
150,001-200,000 | 14% | 7,000 |
200,001 and over | 17% |
The Financial Secretary also noted the following:
We trust you will find the above useful information. Should you have any questions, please do not hesitate to contact us on (852) 3705 0095 or [email protected].