Hong Kong Announces Reliefs For Individuals, Businesses
by Mary Swire, Lowtax.net, Hong Kong
22 August, 2019
Hong Kong's Government has announced a package of reliefs for businesses and individuals, in response to the recent riots and risks around the global economy.
In total, the measures are equal to an almost 50 percent increase on the relief set out in the 2019-20 Budget.
The most significant tax announcement is that the reduction of salaries tax for the 2018/19 year of assessment, which had been 75 perrcent subject to a ceiling of HKD20,000, will be raised to 100 percent with the same ceiling. The tax burden for 1.43 million taxpayers will fall, at a cost of HKD1.84bn.
Other notable announcements include various support to low-income taxpayers, including through government-provided housing rent waivers and one-off utilities payments, and for small and medium sized businesses the waiving of 27 groups of government fees and charges for 12 months. It has also announced a fee review moratorium on government fees and charges until December 31, 2020.
Other supports for businesses include loan guarantees and support for overseas marketing activities, and a reduction to rents of government land for community and business use.
Amendments will be made to the Inland Revenue (Amendment) (Tax Concessions) Bill 2019 in October 2019, to implement the salaries tax reduction.
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