Reducing Profits Tax by 100% for 2023/24, subject to a ceiling of HKD3,000.
Allowing tax deduction for expenses incurred in reinstating the condition of the leased premises to their original condition starting from the year of assessment 2024/25.
Removing the time limit for claiming allowance for industrial buildings and structures and commercial buildings and structures starting from the year of assessment 2024/25. This will allow the new owner to claim allowances for the property after a change of ownership, subject to the factors such as the construction cost of the property and the balancing charge claimed by its previous owner.
Salaries tax
Reducing Salaries Tax and tax under personal assessment by 100% for 2023/24, subject to a ceiling of HKD3,000.
New International Tax Standard – Base Erosion and Profit Shifting (BEPS2.0)
Aiming to apply the global minimum tax rate of 15% on large multinational enterprise groups with an annual consolidated group revenue of at least EUR750 million and impose the Hong Kong minimum top-up tax starting from 2025.
Rates
Waiving rates for non-domestic and domestic properties for the first quarter of 2024/25, subject to a ceiling of HKD1,000.
Stamp duty
Cancelling Special Stamp Duty, Buyer’s Stamp Duty and New Residential Stamp Duty for residential properties with immediate effect.
Financial services
Issuing HKD20 billion of retail green bonds and infrastructure bonds; and HKD50 billion of Silver Bond in 2024/25.
Enhancing preferential regimes for family office funds.
Extending the Grant Scheme for Open-ended Fund Companies and Real Estate Investment Trusts for 3 years.
Other relief measures
Waiving stamp duties payable on the transfer of real estate investment trust (REIT) units and the jobbing business of option market-makers.
Extending the first registration tax (FRT) concessions for electric vehicles to March 2026, with FRT reduced by 40%.
Maximum FRT concession under the “One for One Replacement” Scheme: HKD172,500
Concession ceiling for general electric private cars: HKD58,500
Not applicable to electric private cars valued at over HKD500,000 before tax
Introducing legislative proposal to implement “patent box” tax incentive. Profit Tax rate is to be reduced to 5%.
Studying enhancements to tax concession measures for the maritime industry.
Extending the application period for the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme for two years to the end of March 2026.
Measures to increase revenue
Increasing business registration fees by HKD200 to HKD2,200 per annum from 1 April 2024. The business registration levy of HKD150 will be waived for 2 years.
Implementing a two-tier standard rate regime for salaries tax and tax under personal assessment starting from 2024/25:-
Implementing the progressive rating system for domestic properties (effective from the quarter of January to March 2025 onwards):-
Resuming the collection of the Hotel Accommodation Tax at 1 rate of 3% starting from 1 January 2025.
