New rate concessions and tax cuts to slash costs for enterprises

Financial Secretary Chan announces a 100% profits tax reduction in his Budget Speech.

Non-domestic properties will get a rates concession for the first two quarters of 2026/27, capped at $500 per property, under government measures to ease costs for enterprises.

The move is estimated to cover approximately 440,000 and reduce government revenue by about $400m, Financial Secretary Paul Chan said during his 2026/27 Budget Speech.

Chan added that profits tax for the 2025/26 year of assessment will be reduced by 100%, with a ceiling of $3,000.

“This measure will benefit about 171,000 businesses and reduce government revenue by about $500m,” he added.

The reduction will be reflected in the final tax payable for the year of assessment 2025/26.