4tax rate

2015-16 Budget – Tax Measures Proposed

The Financial Secretary delivered his budget on the 25th February 2015 which contained a number of  tax measures, all of which require legislative amendments before implementation.


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.

The proposed tax measures will be effected by amending the Inland Revenue Ordinance. Please refer to 
www.ird.gov.hk for more details on the proposals and examples of the tax calculations


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