Hong Kong’s 2024-25 Budget Tax Measures

The Financial Secretary proposes a one-off reduction of 100% for profits tax, salaries tax, and personal assessment for the 2023/24 tax year, with a cap of $3,000 per case.

The reduction cap for profits tax is calculated per business. For salaries tax, the reduction cap is calculated per individual; if married persons are jointly assessed with their spouse, the reduction cap is $3,000 for the couple. For personal assessment, the reduction cap for unmarried persons is calculated per individual.

Taxpayers who have to pay both salaries tax and profits tax can receive reductions for both types of taxes. Taxpayers who have business profits or rental income and opt for personal assessment will have their reduction amount calculated based on the tax payable under personal assessment. The final reduction amount will be determined based on the actual situation of each case.

The proposed reduction only applies to the final assessment for the 2023/24 tax year and does not apply to provisional tax for that year; taxpayers must still pay the provisional tax on time. Provisional tax paid will be used to cover the final tax payable for the 2023/24 tax year and the provisional tax payable for the 2024/25 tax year. Any remaining balance will be refunded.

Source: Inland Revenue Department, Government of the Hong Kong Special Administrative Region, People’s Republic of China