Tax reduction measure passed by Legislative Council
On 6 November 2019, the Legislative Council passed the Inland Revenue (Amendment) (Tax Concessions) Bill 2019. The new Ordinance gives effect to the concessionary tax measures proposed in the 2019-2020 Budget.
On 6 November 2019, the Inland Revenue (Amendment) (Tax Concessions) Bill 2019 was passed by Hong Kong’s Legislative Council. This gives effect to a one-time 100% tax reduction for profits tax, salaries tax and tax under personal assessment for the year of assessment 2018/19, in all cases subject to a ceiling of HKD 20,000.
The original bill introduced into the Legislative Council in March 2019 contained the 2019/20 budget proposed measure to reduce salaries tax, tax under personal assessment and profits tax by 75%. In August 2019, the Financial Secretary proposed an increase in the tax reduction from 75% to 100%, as an enhanced measure to support enterprises and individuals, while retaining the ceiling of HKD 20,000.Source: HKSAR Press Release