Hong Kong: Direct and indirect tax proposals in 2024-2025 budget
The Financial Secretary delivered the 2024-2025 budget that included tax-related proposals.
The Financial Secretary delivered the 2024-2025 budget that included tax-related proposals
The Financial Secretary on 28 February 2024 delivered the 2024-2025 budget that included the following tax-related proposals:
Profits tax
- No proposed changes to tax rates
- Reduction of 100% in profits tax payable for 2023-2024, subject to a ceiling of HKD 3,000
- Profits tax deduction for expenses incurred in reinstating the condition of the leased premises to their original condition
- Commencement of study on enhancements to tax concession measures for maritime industry
- Introduction of legislative proposal to implement “patent box” tax incentive
- Reduction of profits tax rate to 5% for profits derived from qualifying intangible property (IP)
- Removal of time limit for claiming allowances for industrial buildings, commercial buildings and structures
- Enhancement of preferential tax regimes for funds and family offices
Salaries tax
- Implementation of two‑tiered standard rates regime for salaries tax and tax under personal assessment starting from the year of assessment 2024-2025
- Reduction of 100% in salaries tax payable for 2023-2024, subject to a ceiling of HKD3,000
Other taxes
- Hotel accommodation tax: Increase from 0% to 3% starting from 1 January 2025
- Rating system: Introduction of progressive rating system for domestic properties in the fourth quarter of 2024-2025
- Stamp duty: Repeal of special stamp duty, buyer’s stamp duty or new residential stamp duty for any residential property transactions starting from 28 February 2024
- Property tax: No proposed changes
- Rates (domestic property): Rates waiver for each domestic property for the first quarter of 2024-2025, subject to a ceiling of HKD 1,000 for each rateable property
- Rates (non-domestic property): Rates concession for each non-domestic property for the first quarter of 2024-2025, subject to a ceiling of HKD 1,000 for each rateable property
For more information, contact a KPMG tax professional:
David Ling | davidxling@kpmg.com
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.