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$2,250.
The Financial Secretary said the Budget placed emphasis on stabilising the economy, supporting enterprises, safeguarding jobs and strengthening livelihoods.
The proposed tax changes are as follows:
A summary of the allowances and deductions for 2019/20 is shown as below:
|Married Person Allowance||264,000|
|Single Parent Allowance||132,000|
|For each child born during the year||120,000|
|Dependent Brother or Dependent Sister Allowance||37,500|
|Dependant Parent and Dependant Grandparent Allowance
|Additional Dependant Parent and Dependant Grandparent Allowance
|Disabled Dependant Allowance||75,000|
|Personal disability allowance||75,000|
|Expenses of self-education||100,000|
|Home Loan Interest||100,000; 20 Years|
|Elderly Residential Care||100,000|
|Approved Charitable Donations||35% of income after deductions|
|Income HK$||Progressive tax rate||Progressive tax applicable to the band HK$|
|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].