On May 22, 2024, the government passed the Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Bill 2024 by the Legislative Council today (May 22). The Bill gives effect to the Government's proposals announced in the 2024-25 Budget and the 2023 Policy Address. This article will guide you through the tax relief and adjustment measures introduced.
Taxation Concessions in the 2024 Budget:
1、Salary Tax and Tax Under Personal Assessment rebate:
A 100% rebate on salary tax and tax under personal assessment for the 2023/24 assessment year, capped at HK$3,000.
2、Profits Tax Rebate:
A 100% rebate on Profits Tax for the 2023/24 assessment year, capped at HK$3,000.
3、Additional Deduction Limit:
Starting from the 2024/25 tax year, if taxpayers meet certain conditions (such as living with a newborn child in Hong Kong for at least six months), they can claim an additional HK$20,000 deduction on top of the original HK$100,000 basic deduction for home loan interest or residential rent. This additional deduction can be claimed for up to 19 years.
In contrast, the budget also confirmed the following two tax measures that increase taxpayers' burden:
1、Implementation of a two-tiered standard tax rate for Salaries Tax and Personal Income Tax:
Starting from the year of assessment 2024/25, under this tax rate system, the net chargeable income up to the first HK$5 million will be taxed at 15%, while the remaining portion exceeding HK$5 million will be taxed at 16%. It is estimated to affect approximately 12,000 taxpayers.
2、Increase in Business Registration Fees:
Effective April 1st, the annual fee for business registration will increase to HK$2,200. However, the HK$150 contribution to the Protection of Wages on Insolvency Fund will be exempted, making the total fee HK$2,200 (previously HK$2,150).
The above content is provided for reference only. If you have any inquiries about company secretarial matters or wish to consult on other accounting issues, please feel free to click the button below to contact us:
