Hong Kong Tax Newsflash

The Legislative Council passed the Bill¹ yesterday, which aims to enact the following tax measures proposed in the 2023 Policy Address and the 2024-25 Budget:

• A one-off tax reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2023/24 by 100%, subject to a ceiling of HKD3,000 for each case.
• The implementation of a two-tiered standard rates regime for salaries tax and tax under personal assessment² effective from the year of assessment 2024/25, with a rate of 15% on the first HKD5 million of net income and 16% on the remainder.
• An increase in deduction ceilings for home loan interest and domestic rents³ from HKD100,000 to HKD120,000 for eligible taxpayers starting from the year of assessment 2024/25.

¹ Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Bill 2024

² For details, please refer to our GES Tax Newsflash dated 29 February 2024.

³ For details, please refer to our GES Tax Newsflash Issue dated 30 October 2023.

Tax Newsflash is published for the clients and professionals of Deloitte Touche Tohmatsu. The contents are of a general nature only. Readers are advised to consult their tax advisors before acting on any information contained in this newsletter.

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