On February 27th of 2019, the Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chang, announced the Budget for the year 2019/20.
The most relevant aspects of the Budget that will take effect from April 1st of 2019 are the following:
1. Salaries Tax and Personal Assessment
The Salaries Tax is governed in Section 8 of the Inland Revenue Ordinance (IRO). Any income perceived from employment and/or pension arising in or derived from Hong Kong will be subject to Salaries Tax.
Individuals are taxed at a progressive tax rate on their net chargeable income (i.e. assessable income after deductions and allowances) starting at 2% and ending at 17%; or at a standard tax rate of 15%, whichever is lower.
Salaries Tax for 2019/20 will be reduced by 75% of the payable amount subject to a ceiling of HKD20,000 per case.
The following table summarizes the annual allowances in HKD:
2. Profits Tax
Profits Tax is governed in Section 14 of IRO. The Profits Tax rate for the first HKD2 million is maintained at an 8.25% rate and thereafter at the standard rate of 16.5%. The purpose is to continue to support SMEs.
Profits Tax for 2019/20 will be reduced by 75% of the payable amount subject to a ceiling of HKD20,000 per case.
3. Government Fees
For the period 2019/20, the government fees of the Business Registration Certificate will be reduced from HKD2,250 to HKD250.
If you have any questions related to the Budget 2019/20 of the Hong Kong Special Administrative Region or other tax issues, please contact us at +852 2528 4999 or by email at: info@la-nao.com
La Nao Consulting