The 2024-25 Budget - Tax relief measures
Tax measures proposed in 2024-25 Budget
The Financial Secretary proposed the following tax relief measures in his 2024-25 budget on 28 February 2024.
Corporations – Profits Tax
Reduce profits tax for the year of assessment 2023/24 by 100%, subject to a ceiling of HK$3,000. The reduction will be reflected in the final tax payable for the year of assessment 2023/24. This will benefit 160 000 businesses.
Individuals – Salaries Tax
Reduce salaries tax and tax under personal assessment for the year of assessment 2023/24 by 100%, subject to a ceiling of HK$3,000. The reduction will be reflected in the final tax payable for the year of assessment 2023/24. This will benefit 2.06 million taxpayers liable to salaries tax.
Other charges
The Financial Secretary proposed to increase business registration fees by $200 to $2,200 per annum with effect from 1 April 2024. To relieve the relevant impact, it is proposed to waive the business registration levy of $150 for two years.
The above measures will be implemented upon completion of the relevant legislative procedures.
Remarks:
The proposed tax reduction will only be applicable to the final tax for the year of assessment 2023/24, but not to the provisional tax of the same year. Therefore, despite the proposed reduction, taxpayers are still required to pay the provisional tax on time as stipulated in the demand notes that have been issued to them. The provisional tax paid will, in accordance with the Inland Revenue Ordinance, be applied in payment of the final tax for the year of assessment 2023/24 and provisional tax for the year of assessment 2024/25. The excess balance, if any, will be refunded.
