CENTRAL: Hong Kong’s Inland Revenue Department gazetted the Inland Revenue (Amendment) Bill 2018, containing measures worth HKD30bn (USD3.82bn) announced in the Budget.
Adjustments to salaries tax and tax under personal assessment will reduce tax revenue by HKD6.43bn per year. This includes increasing the number of tax bands from four to five with marginal rates of two percent, six percent, 10 percent, 14 percent, and 17 percent, and widening the income separating the bands from HKD45,000 to HKD50,000 each. These adjustments will benefit 1.34 million taxpayers.
Increasing both the child allowance for each eligible child and the additional child allowance in respect of each child born in the year of assessment from HKD100,000 to HKD120,000. This measure will benefit 335,000 taxpayers and reduce tax revenue by HKD1.31bn a year.
Increasing both the dependent parent/grandparent allowance and the additional dependent parent/grandparent allowance for each eligible parent/grandparent from HKD46,000 to HKD50,000 (for those aged 60 or above, or with disabilities) and from HKD23,000 to HKD25,000 (for those aged 55 or above but below 60); and raising the deduction ceiling for elderly residential care expenses for each eligible parent/grandparent from HKD92,000 to HKD100,000. These measures will benefit 607,000 taxpayers and reduce tax revenue by HKD580m a year.
