2023 Policy Address Highlights

In his Policy Address delivered on 25 October 2023, the Chief Executive of HKSAR proposed the following major measures:

2023 POLICY ADDRESS – TAX-RELATED POLICY MEASURES (ON INDIVIDUALS)

To promote fertility and create a children-friendly environment, the following tax measures under salaries tax and personal assessment will take effect from the year of assessment 2024/25:

• Raising the deduction ceiling for home loan interest or domestic rents from the current $100,000 to $120,000 for taxpayers who reside with his / her first child born on or after 25 October 2023, until the child reaches the age of 18.
• Providing deduction for expenses on assisted reproductive services, subject to the ceiling of $100,000 per year.

2023 POLICY ADDRESS – STAMP DUTY MEASURES

• Shortening the resale period during which the Special Stamp Duty can be charged from three years to two years
• Reducing the ad valorem stamp duty rate of Part 1 of Scale 1 from 15% to 7.5%
• Reducing the rate of Buyer’s Stamp Duty from 15% to 7.5%
• Introducing a stamp duty suspension mechanism for eligible incoming talents purchasing residential property in Hong Kong

For details, please refer to the follow official link:

https://www.ird.gov.hk/eng/tax/policyaddress.htm

https://www.ird.gov.hk/eng/faq/index.htm#sp

Should you have any questions on these, please do not hesitate to contact us.