In March 2018, the Financial Secretary has announced 2018/19 Budget, outlining the plans for the economy and proposals for changes to taxation. The major proposed tax concessions and measures including:
For Profits Tax
For Salaries/ Individuals Tax
(i) Increasing the width of marginal tax bands & increase the number of tax bands from 4 to 5:
(ii) One-off reduction of salaries tax for the year of assessment 2018/19 by 75%, subject to a ceiling of HKD30,000 per case
(iii) Increasing allowances
- Child allowance increase from HKD100,000 to HKD120,000
- Dependent parent/ grandparent allowance from HKD46,000 to HKD50,000
- Additional dependent parent/ grandparent allowance from HKD46,000 to HKD50,000
- Introduce a personal disability allowance of HKD75,000
