MAJOR MEASURES PROPOSED IN 2024-25 BUDGET

In his Budget delivered on 28 February 2024, the Financial Secretary of HKSAR proposed the following major measures:

1. Property Market
Cancel Special Stamp Duty, Buyer’s Stamp Duty and New Residential Stamp Duty for residential properties with immediate effect.
Further relax countercyclical macroprudential measures for property mortgage loans and adjust other supervisory policies for property lending.

2. Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2023/24
One-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2023/24 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.

3. Provide rates concession for 2024/25
Offer rates concession for the first quarter of 2024/25. The concession ceiling is $1,000.

4. Building the Hong Kong Brand
Allocate over HK$1.09 billion to strengthen tourism development and organize events like “Splendid Victoria Harbour” and Immersive and in-depth tourism.

5. Pay extra half month of allowances
Offer to pay extra half month allowance of standard CSSA payment, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to Working Family.

6. Business registration fees
Increase by HK$200 to HK$2,200 per annum from 1 April 2024. Business registration levy of HK$150 will be waived for 2 years.

7. Proposed two-tier standard rates regime for salaries tax and tax under personal assessment (starting from the 2024/25 assessment year)
Affecting only taxpayers with over HK$5million net income and whose tax payable is calculated at standard rate. Taxpayers on progressive rated will note be affected.

For details, please refer to the follow official link:
https://www.budget.gov.hk/2024/eng/speech.html
Should you have any questions on these, please do not hesitate to contact us.