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MAJOR MEASURES PROPOSED IN 2026-27 BUDGET
In his Budget delivered on 25 February 2026, the Financial Secretary of HKSAR proposed the following major measures:
1. Actively Align with the National 15th Five-Year Plan
- Contribute to the country’s modernized industrial system and technological self-reliance;
- Actively participate in the country’s high-level two-way opening up;
- Attract high-calibre international talents
2. Life and health technology
- International Clinical Trial Academy to be established in 2027;
- $500 million injection for Chinese Medicine Development Fund to support strategic research, training and international publicity
3. Driving AI+ Development
- Establish Committee on AI+ and Industry Development Strategy to transform industries;
- Provide $50 million to help public organisations, tech enterprises and tertiary institutions set up AI application courses seminars and competitions;
- Provide $100 million to accelerate Government digital transformation with leading technologies
4. Northern Metropolis (“NM”)
- Provide $10 billion to accelerate land development, provide infrastructure, establish venture fund for Hetao Co-operation Zone Hong Kong Park;
- Establish dedicated company and inject $10 billion as initial capital for San Tin Technopole;
- Provide $10 billion to support initial operation of Hung Shui Kiu Industry Park Company Limited, beginning operation in 2026
5. Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2025/26
One-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2025/26 by 100%, subject to a ceiling of $3,000 per case. The proposed tax reduction is not applicable to property tax. Individuals with rental income, if eligible for personal assessment, may be able to enjoy such reduction under personal assessment.
6. Provide rates concession for 2026/27
Offer rates concession for the first and second quarter of 2026/27. The concession ceiling is $500.
7. Education and Talent
- Provide $10 billion loan to support campus development in the NM University Town;
- Reserve land and resources for developing a new medical school and integrated medical teaching and research hospital in Ngau Tam Mei
8. Pay extra one month of allowances
Offer to pay extra one month allowance of standard CSSA payment, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to Working Family Allowance.
9. Domestic property transactions
Adjust stamp duty on resident properties valued over $100 million from 4.25% to 6.5%, with retrospective effect from 26 Feb 2026
| Ad valorem stamp-duty rate on residential properties after adjustment | |
| Amount or value of the consideration (HK$) | Rates |
| Up to $100,000,000 | Same as existing arrangements |
| $100,000,001 to $109,574,470 | $4,250,000 + 30% of excess over $100,000,000 |
| $109,574,471 and above | 6.50% |
10. Adjustments to Tax Allowances and Deduction Ceilings
| Tax Allowance Item | At Present (HK$) | From 2026-27 Year of Assessment |
| Basic allowance | $132,000 | $145,000 |
| Single parent allowance | $132,000 | $145,000 |
| Married person’s allowance | $264,000 | $290,000 |
| Child allowance | $130,000 | $140,000 |
| Dependent parent/grandparent allowances | For dependent parent/grandparents aged 60 or above, or parent/grandparent eligible in receipt of disability allowance | |
| $50,000 | $55,000 | |
| For dependent parent/grandparent aged 55 to 59 | ||
| $25,000 | $27,500 | |
| Deduction ceiling for elderly residential care expenses | $100,000 | $110,000 |
For details, please refer to the following official link:
https://www.budget.gov.hk/2026/eng/speech.html
Should you have any questions on these, please do not hesitate to contact us.
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