HONG KONG: Lawmakers in Hong Kong on May 25 passed the numerous tax changes that were announced in the 2017-18 Budget. The measures include widening marginal salaries tax bands from HKD40,000 (USD5,132) to HKD45,000; increasing the disabled dependent allowance from HKD66,000 to HKD75,000; and raising the dependent brother/sister allowance from HKD33,000 to HKD37,500.
In addition, the entitlement period for home loan interest deduction is extended from 15 years to 20 years, while the current deduction ceiling of HKD100,000 a year is maintained. The deduction ceiling for self-education expenses is increased from HKD80,000 to HKD100,000. All of the above adjustments together are estimated to reduce tax revenue by HKD2bn each year. At a cost of HKD18.3bn, the Bill also introduces a one-off 75 percent reduction in salaries tax, tax under personal assessment, and profits tax for the year of assessment 2016-17, subject to a ceiling of HKD20,000 per case.
