On February 26,
2025, Hong Kong’s Financial Secretary, Paul Chan, unveiled the 2025-26 Budget,
setting out a roadmap to tackle economic challenges while driving future
growth.
Profits Tax:
- A 100% reduction in profits tax
for the year of assessment 2024-25, capped at HK$1,500.
- The standard profits tax rate
remains at 16.5% for corporations and 15% for unincorporated businesses.
- A half-tax concession (i.e., a tax
rate of 8.25%) will be offered to eligible commodity traders to attract
commodity trading enterprises to establish their presence in Hong Kong.
- Enhanced tax measures for the
maritime industry, including a tax deduction on ship acquisition costs for
ship lessors under operating leases.
- A review of tax deduction
arrangements for the purchase of intellectual property usage rights and
related transactions is proposed.
Tax Salaries:
- A 100% reduction
in salaries tax for the year of assessment 2024-25, also capped at HK$1,500.
Property Tax
and Stamp Duty:
- The maximum value of properties
eligible for a stamp duty of HK$100 has been increased from HK$3 million to
HK$4 million, effective February 26, 2025
- A rates waiver for domestic and
non-domestic properties for the first quarter of 2025-26, subject to a ceiling
of HK$500 per rateable property.
- A progressive rating system for
domestic properties will be implemented starting January 1, 2025.
Hotel
Accommodation Tax:
- No changes are proposed to the
hotel accommodation tax; however, it increased from 0% to 3% starting January
1, 2025.
These measures reflect the
government's efforts to balance fiscal responsibility with economic
stimulation, aiming to support various sectors and maintain Hong Kong's
competitiveness as an international financial center.
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