Hong Kong Legislative Council Passed the Tax Reduction Introduced in 2017/18 Budget

On 25 May 2017, Hong Kong Legislative Council passed the Inland Revenue (Amendment) Bill 2017 and carried out the tax reduction introduced in 2017/18 Budget.

The tax measures include reducing salaries tax, tax under personal assessment and profits tax for the year of assessment 2016/17 by 75%, subject to a ceiling of HKD20,000 per case. The new Ordinance also gives effect to the enhanced tax measures relating to disabled dependant allowance, dependent brother/sister allowance, deduction ceiling for self-education expense and entitlement period for home loan interest deduction. In addition, the marginal tax bands of individual income tax will also be increased from HKD40,000 to HKD45,000.

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