, Hong Kong
Photo by Bady Abbas from Unsplash

Govt greenlights tax relief bill

The bill will cut taxes on profit, salaries, and personal assessment.

The government passed the Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Bill 2024.

Under the amendment, taxes for profit, salaries, and personal assessment for FY23-24 will be reduced by 100%, capped at $3,000 per case.

The tax cut will benefit 2.06 million taxpayers and 160,000 tax-paying businesses. 

The tax cut will follow standard rates: the first $5m of net income will be taxed at 15%, while any amount beyond $5m will be taxed at 16%.

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

The tax cut will generate an additional $905m in annual revenue for the government.

From FY24-25, the government will post an additional deduction ceiling of $20,000 for home loan interest or domestic rent on top of the $100,000 basic deduction ceiling if the taxpayer meets specified conditions.

Such conditions include residency with a newborn in Hong Kong for at least six months or a shorter period deemed reasonable by the Commissioner of Inland Revenue. 

Taxpayers are also allowed an additional deduction ceiling amount for a maximum of 19 years of assessment.


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