Hong Kong’s Financial Secretary, in his budget released today, proposed a 75 percent reduction of profits tax, salaries tax, and tax under personal assessment for the year of assessment 2017–18, subject to a ceiling of HKD $30,000 per case (USD $3,832).
In addition, the Financial Secretary proposed to widen and increase the number of the tax bands and adjust the marginal tax rates for salaries tax.
Further, the government will amend profits tax rules related to the qualifying debt instrument scheme to increase the types of qualified instruments. Debt securities listed on the Hong Kong Stock Exchange will now become eligible.
The government will also extend the scope of tax exemption from debt instruments with an original maturity of not less than seven years to instruments of any duration.
Further, the government will enhance tax concessions for capital expenditure incurred by enterprises in procuring eligible efficient building installations and renewable energy devices by allowing the tax deduction to be claimed in full in one year instead of the current time frame of five years.
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