Gov’t to cut taxes on salaries and profit for FY23-24

In FY2023-24, the government sent out 2.44 million tax returns.

The Inland Revenue Department said taxes from profit, salaries, and personal assessment for FY23-24 will be reduced by 100%, capped at $3,000 per case.

For FY2023-24, the Inland Revenue Department sent out 2.44 million tax returns. Taxpayers earning over $900,000 increased by one percentage point (ppt), making up 15.3% of the city’s 1.83 million taxpayers.

For FY24-25, the government will implement a two-tiered standard rates scheme for salaries and personal assessments taxes.

The deduction ceiling for home loan interest or domestic rents will also be raised to $120,000 from $100,000 for eligible taxpayers with children born on or after 25 October 2023.

In addition, a deduction for expenses on assisted reproductive services will be provided under salaries and personal assessment taxes, capped at $100,000 per year.

The government will begin the legislative process to implement the proposal.