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.