The Inland Revenue (Amendment) (No. 2) Bill 2013 was passed on 26 June 2013 by the Hong Kong Legislative Assembly to implement the tax reduction measures proposed in the 2013-14 Budget.
The concessionary revenue measures highlight the following changes;
- Increase the basic and additional child allowances under the salaries tax and tax under personal assessment.
- Increase the deduction ceiling for self-education expense under salaries tax.
- A single reduction of salaries tax, tax under individual assessment and profits tax for the year of assessment 2012-2013 by 75% subject to ceiling of HKD 10,000 per case.
The onetime tax reduction will be applicable in the taxpayer’s final tax payable for the year of assessment 2012-2013. Nearly 310,000 taxpayers will be given advantage under these measures.
