New bill to reduce tax by as much as $6k

The bill will be gazetted on 3 March.

The Hong Kong Government announced that the amended Inland Revenue Bill, which will reduce taxes of up to $6k per case, will be gazetted on 3 March

The amended bill will apply the 100% reduction to Hong Kong’s salaries tax, tax under personal assessment, and profits tax for the 2022-2023 assessment year, which will be subjected to a ceiling of $6k per case.

READ MORE: HK Govt records $77b deficit for FY2023

The tax decrease will benefit 1.9 million taxpayers and 133,500 tax-paying businesses and reduce government revenue by $9.2b.

The amended bill will also enact the increase to the allowance for every child born during the year of assessment from $120k to $130k.

About 324,000 taxpayers stand to benefit from this measure, leading to revenue forgone of about $610m per year.