On 28 February 2024, the Financial Secretary of Hong Kong presented the 2024-25 Budget. The Budget includes various tax measures, including:

A proposal for a 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. This measure will cost the Government $5.5 billion, benefitting 2.06 million taxpayers liable to salaries tax and tax under personal assessment and 160,000 businesses.

The tax reduction will reduce the amount of tax payable by taxpayers for the year of assessment 2023/24. Taxpayers should file their profits tax returns and tax returns for individuals for the year of assessment 2023/24 as usual. Upon enactment of the relevant legislation, the Inland Revenue Department will effect the reduction in the final assessment.

The proposed tax reduction will only apply to the final tax for the year of assessment 2023/24 but not to the provisional tax of the same year. Therefore, taxpayers are still required to pay the provisional tax on time as stipulated in the demand notes issued to them. The provisional tax paid will, per the Inland Revenue Ordinance, be applied in payment of the final tax for the year of assessment 2023/24 and provisional tax for the year of assessment 2024/25.

The Financial Secretary also clarified that Hong Kong is committed to implementing the global minimum tax initiative proposed by the OECD to tackle base erosion and profit shifting. Hong Kong intends to implement a 15% global minimum tax rate on large multinational enterprise groups with an annual consolidated group revenue of at least EUR 750 million. Additionally, Hong Kong plans to introduce the Hong Kong minimum top-up tax from 2025.