HK passes tax reduction bill

Some 1.53m taxpayers to benefit.

The Inland Revenue (Amendment) (No.2) Bill 2013 implements the concessionary revenue measures proposed in the 2013-2014 Budget.

The measures include increasing the basic and additional child allowances under salaries tax and tax under personal assessment; enhancing the deduction ceiling for self-education expenses under salaries tax and a one-off reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2012-13 by 75%, subject to a ceiling of $10,000 per case.

About 1.53 million taxpayers will benefit from the reduction of salaries tax and tax under personal assessment.

The reduction of profits tax will benefit 119,000 tax-paying companies, and 310,000 taxpayers will benefit from the measures of increasing the basic and additional child allowances, and enhancing the deduction ceiling for self-education expenses.

Secretary for Financial Services & the Treasury Prof KC Chan said the passage allows the Inland Revenue Department to implement the measures, and the one-off tax reduction will be reflected in the taxpayer's final tax payable for the year of assessment 2012-2013.