It aims to implement tax measures proposed in the 2018/19 budget speech.
The Legislative Council has passed Inland Revenue Amendment Bill 2018 into law enabling the Inland Revenue Department to implement tax policy proposals outlined in the 2018-19 budget address, according to a government release.
The proposals laid out by Financial Secretary Paul Chan include widening the marginal salary tax bands from $45,000 to $50,000, increasing the child allowance from $100,000 to $120,000 and introducing a $75,000 personal disability allowance.
The budget address also proposed raising the dependent parent/grandparent allowance from $23,000 to $25,000 for supporting dependents aged between 55 and 59, and raising the allowance from $46,000 to $50,000 for those aged 60 or above.
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“We believe the concessionary tax measures can relieve the tax burden of taxpayers, allowing them to share the fruits of our economic success,” said secretary for financial services & the treasury James Lau.
The new ordinance also gives effect to the one-off concessionary tax measures which include the reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2017-18 by 75%, subject to a ceiling of $30,000 per case.
Hong Kong's total revenues from tax rose 13% YoY to $328.6b for 2017/18 fiscal year amidst higher stamp duty receipts due to aggressive property transactions. Profits tax collection stood at $139.1b, similar to the previous year, and salaries tax collection increased by 3% to $60.8b. Commissioner of Inland Revenue Wong Kuen-fai forecasts total revenue collection at $343.3b for the coming year.
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