Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2023/24
The Financial Secretary proposed a one-off 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 $3,000 per case.
Implementing a two-tiered standard rates regime for salaries tax and tax under personal assessment
The Financial Secretary proposed to implement a two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the year of assessment 2024/25. In calculating the amount of tax for taxpayers whose net income (before deduction of allowances) exceeds $5 million and whose salaries tax or tax under personal assessment is to be charged at a standard rate, the first $5 million of their net income will continue to be subject to the standard rate of 15% while the portion of their net income exceeding $5 million will be subject to the standard rate of 16%.
Providing tax deduction for lease reinstatement costs
The Financial Secretary proposed to provide tax deduction under profits tax for expenses incurred in reinstating the condition of the leased premises to their original condition starting from the year of assessment 2024/25. This measure can only be implemented after completion of the relevant legislative process.
Removing the time limit for claiming industrial and commercial building allowances
The Financial Secretary proposed to remove the time limit for claiming the industrial and commercial building allowances starting from the year of assessment 2024/25. After a change of ownership, subject to factors such as the construction cost of the property and the balancing charge of its previous owner, the new owner will be allowed to claim the allowance for the property. This measure can only be implemented after completion of the relevant legislative process.
Increasing business registration fees and waiving the business registration levy for 2 years
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 payable to the Protection of Wages on Insolvency Fund for two years.
Cancelling all demand-side management measures for residential properties
The Financial Secretary proposed to cancel all demand-side management measures for residential properties with immediate effect, that is, no Special Stamp Duty (SSD), Buyer’s Stamp Duty (BSD) or Ad Valorem Stamp Duty (AVD) at 7.5% under Part 1 of Scale 1 needs to be paid for any residential property transactions starting from today. The Government will introduce the Stamp Duty (Amendment) Bill 2024 (the Bill) to take forward the initiative. To enable property purchasers to benefit from the measures as soon as possible, the Chief Executive has also made the Public Revenue Protection (Stamp Duty) Order 2024 under the Public Revenue Protection Ordinance (Cap. 120) to give full force and effect of law to the Bill before its enactment. Subject to the eventual enactment of the Bill, any instrument executed on or after 28 February 2024 for the sale and purchase or transfer of residential properties are no longer subject to SSD and BSD. The AVD rate of 7.5% under Part 1 of Scale 1 is to be amended to the same as those of AVD at Scale 2.