Hong Kong 2018-2019 Budget Highlights
A record-breaking budget surplus of HKD138b (USD 17.6b) for the 2017-2018 fiscal year was the biggest news delivered by Hong Kong Financial Secretary Paul Chan Mo-po at today’s budget address.
Here is a summary of other highlights that are relevant for our clients and partners.
>> Click here for a detailed analysis of the 2018-19 meaures
- The ceiling for the 75% profits tax deduction was raised from HKD 20k to HKD 30k
- The ‘Two-tier profit tax system’ – a bold proposal to reduce the corporate income tax for the first HKD 2m of profits – was announced officially in December 2017 and is expected to be approved shortly by the Legislative Council
- 75% reduction in salaries tax and tax under personal assessment up to a ceiling of HKD 30k
- Lower income tax payable for individuals assessed under progressive tax rates
- Child allowance was increased from HKD 200k to HKD 240k
- Disabled allowance was introduced
INDUSTRY-SPECIFIC MEASURES
300% tax deduction for the first HKD 2m of qualified R&D expenditure + 200% tax deduction for the remainder
Cap trade declaration charge at HKD 200 to boost HK’s competitiveness as a trading hub and develop high-value added logistics services
HKD 500m set aside to develop financial service industry and launch a Fast Payment System
Please feel free to get in touch with us if you wish to know more about these measures and their implications on your business.