2015-16 Budget – Tax Measures Proposed

The numbers of tax measures proposed in his budget are summarized in brief as below:

• One-off 75 per cent reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2014-15, subject to a ceiling of $20,000 per case.

• The reduction will reduce the amount of tax payable by taxpayers for the year of assessment 2014-15.

• The proposed tax reduction is not applicable to ‘property tax’. However, individuals with rental income, if eligible for personal assessment, may be able to enjoy such reduction under personal assessment.

• Child allowance and additional child allowance increase from the current $70,000 to $100,000 for each child. Effective from year of assessment 2015-16 upon enactment of the relevant legislation.

• For profits tax, interest deductions are available for corporate treasury centres under specified conditions and reducing profits tax for specified treasury activities by 50 per cent.

• The Government plans to table a bill in the Legislative Council later to allow private equity funds to enjoy profits tax exemption available to offshore funds.