The Hong Kong budget 2023-2024: key takeaways
On Wednesday 22 February, The Hong Kong Government announced the annual budget for 2023-2024, which includes one-off tax cuts, various subsidies, and property concessions. Find out how the budget will affect you and your business, as well as Hong Kong’s wider economy, and learn the key takeaways for companies based in, or planning to enter, the Hong Kong market.
Benefits for enterprises
Enterprises will benefit from a package of measures including:
- Reducing profits tax for the year of assessment 2022-23 by 100%, subject to a ceiling of HK$6,000
- Extending the application period of 100% guarantee low-interest loan for enterprises from June 2023 to March 2024
- Injecting HK$500 million into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) and expediting the processing of applications
- Introducing a "patent box" tax incentive to encourage the I&T sector to create more patented inventions
- Increasing tax deduction for Mandatory Provident Fund voluntary contributions made by employers for their employees aged 65 or above, from 100% to 200% to encourage employment of elderly employees
Benefits for individuals
Individuals will we be able to benefit from the following measures:
- Salary tax to be reduced by 100%, subject to a ceiling of HK$6,000
- Increasing the basic child allowance and the additional child allowance for each child born from the year of assessment 2023/24 from HK$120,000 to HK$130,000
- Waiving rates for non-domestic properties for the first two quarters of 2023/24, subject to a ceiling of HK$1,000 per quarter
- Waiving rates for domestic properties for the first two quarters of 2023/24, subject to a ceiling of HK$1,000 per quarter
- Issuing Electronic Consumption Voucher of HK$5,000 in instalments to each eligible Hong Kong permanent resident and new arrival aged 18 or above
Other measures introduced:
- Granting each eligible residential electricity account a subsidy of HK$1,000
- Introducing a new Capital Investment Entrant Scheme whereby applicants may reside and pursue development in Hong Kong after making an investment of a certain amount in the local asset market, excluding property
Further information on the 2023 Hong Kong budget will be provided as they are made available in the coming days. Meanwhile, for any enquiries on how the budget may affect your business, please reach out to our team of experts.
For full details on the budget, please visit the Hong Kong Budget website.
Are you planning to incorporate or register a company in Hong Kong? Read more about Hong Kong company incorporation.