Budget Highlights – 10 Key Tax Measures
The Hong Kong Government has delivered its Budget for the fiscal year 2024-2025 with a view to supporting the economic recovery, enhancing the competitiveness and resilience of Hong Kong, and improving the livelihood of the residents. More specifically, tax measures have been announced to enhance Hong Kong’s attractiveness as a global family office hub, a leading asset and wealth management hub, an international innovation and technology centre, as well as to align Hong Kong with international tax standards and developments.
The 10 key tax measures which are potentially relevant for your business or yourself include the following:
Companies and investors
Enhancement of the existing preferential tax regime for family offices, amongst others;
A legislative proposal to implement a “patent box” tax regime, in respect of which qualifying income will be subject to 5% only;
A waiver of stamp duty on the transfer of Real Estate Investment Trust (REIT) units and jobbing business of option market-makers;
Cancellation of Special Stamp Duty, Buyers’ Stamp Duty and New Residential Stamp Duty for residential properties with immediate effect;
A rates concession for residential and non-residential properties for the first quarter of 2024/25, subject to a ceiling of HK$1,000 per property;
A 100% reduction of profits tax for the year of assessment 2023/24, subject to a ceiling of HK$3,000;
A waiver of business registration levy of $150 for 2024/25, although the business registration fee will be increased from $2,000 to $2,200 per annum from 1 April 2024.
Individuals
A 100% reduction of salaries tax and personal assessment tax for the year of assessment 2023/24, subject to a ceiling of HK$3,000;
A rates concession for residential and non-residential properties for the first quarter of 2024/25, subject to a ceiling of HK$1,000 per property;
Cancellation of Special Stamp Duty, Buyers’ Stamp Duty and New Residential Stamp Duty for residential properties with immediate effect.
If you have any queries on how the Budget affects you or your business, please contact us on info@kyimtax.com.