, Hong Kong

Proposed tax concessions get approval

The measure to increase the child allowance was also passed.

Hong Kong Legislative Council passed a measure for tax concessions and an increase in child allowance, proposals that were made in the Budget 2023-24.

In a statement, the government said that with the passage of the Inland Revenue (Amendment) (Child Allowance & Tax Concessions) Bill 2023, it will reduce salaries tax, tax under personal assessment, and profit tax for the assessment year 2022/23 by 100%, with a ceiling of $6,000 per case.

The amendment will also raise the basic and additional child allowance for every child born under salaries tax and tax under personal assessment from $120,000 to $130,000 starting the assessment year 2023/24.

"The two proposals mainly aim at alleviating the burden of taxpayers,” said Acting Secretary for Financial Services and the Treasury Joseph Chan.

Chan added that around 1.9 million taxpayers, and 133,500 tax-paying businesses will benefit from the tax concessions, with a total government forgone revenue of around $9.2b.

Around 324,000 taxpayers will also gain from the increased child allowance and the government is expected to see a reduced tax revenue of around $610m annually.

The government said the tax concessions will be reflected on the final tax payable for the 2022/23 assessment, but the increased child allowance will take effect in the 2023/24 assessment.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!