Tax amendment bill passed

It aims to implement tax measures proposed in the 2018/19 budget speech.

The Legislative Council has passed Inland Revenue Amendment Bill 2018 into law enabling the Inland Revenue Department to implement tax policy proposals outlined in the 2018-19 budget address, according to a government release.

The proposals laid out by Financial Secretary Paul Chan include widening the marginal salary tax bands from $45,000 to $50,000, increasing the child allowance from $100,000 to $120,000 and introducing a $75,000 personal disability allowance.

The budget address also proposed raising the dependent parent/grandparent allowance from $23,000 to $25,000 for supporting dependents aged between 55 and 59, and raising the allowance from $46,000 to $50,000 for those aged 60 or above.

Also read: Two-tiered tax system gazetted

“We believe the concessionary tax measures can relieve the tax burden of taxpayers, allowing them to share the fruits of our economic success,” said secretary for financial services & the treasury James Lau.

The new ordinance also gives effect to the one-off concessionary tax measures which include the reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2017-18 by 75%, subject to a ceiling of $30,000 per case. 

Hong Kong's total revenues from tax rose 13% YoY to $328.6b for 2017/18 fiscal year amidst higher stamp duty receipts due to aggressive property transactions. Profits tax collection stood at $139.1b, similar to the previous year, and salaries tax collection increased by 3% to $60.8b. Commissioner of Inland Revenue Wong Kuen-fai forecasts total revenue collection at $343.3b for the coming year.