The Financial Secretary of Hong Kong recently gave his 2024-25 Budget Speech. Kenneth Chau & Co. highlighted some of the tax related measures in this summary.

1. HONG KONG BUDGET 2024/2025 www.kennethchaucpa.com
7%
8%
10%
11%
29%
35%
April May June July Aug Sep
The Financial Secretary
of the Hong Kong
Special Administrative
Region Government, Mr
Paul Chan released the
2024/2025 Budget on 28
February 2024.
Kenneth Chau & Co.
prepared this highlight to
summarize the tax
related measures in the
Budget.
Hong Kong
Budget
2024

2. A. Pro
fi
ts Tax
1. Profits Tax rates remained unchanged. The two-tiered profits tax rates
for incorporated company (First HK$2m profit at 8.25% and remaining
at 16.5%) and unincorporated businesses (First HK$2m profit at 7.5%
and remaining at 15%) are same as last year.
2. Reduction of 100% in Profits Tax payable for 2023/24, subject to a
ceiling of HK$3,000.
3. Proposed to remove the time limit for claiming industrial and
commercial building allowances commencing from the year of
assessment 2024/25
B. Salaries Tax
1. Proposed to implement a two-tiered standard rates regime for salaries
tax and tax under personal assessment starting from the year of
assessment 2024/25.
In calculating the amount of tax for taxpayers whose net income
(before deduction of allowances) exceeds HK$5m and whose salaries
tax or tax under personal assessment is to be charged at a standard rate:
- first HK$5m of their net income will continue to be subject to the
standard rate of 15%
- remaining amount will be subject to the standard rate of 16%.
After enactment of the relevant legislation, the Inland Revenue
Department will apply the two-tiered standard rates in calculating the
provisional salaries tax for the year of assessment 2024/25.
2. Reduction of 100% in salaries tax and tax under personal assessment
for 2023/24, subject to a ceiling of HKD3,000.
HONG KONG BUDGET 2024/2025 www.kennethchaucpa.com

3. C. Stamp Duties
Cancellation of Special Stamp Duty, Buyer’s Stamp Duty or New
Residential Stamp Duty for any residential property transactions starting
from 28 February 2024.
D. Developments in International Taxation
Hong Kong Government will continue to take forward the implementation
of the global minimum tax proposal drawn up by the Organisation for
Economic Co-operation and Development to address base erosion and
profit shifting. The aim is applying the global minimum tax rate of 15% on
large multinational enterprise groups with an annual consolidated group
revenue of at least EUR 750 million and impose the Hong Kong minimum
top-up tax starting from 2025. The consultation is currently in progress and
the submission of legislative proposal to LegCo is expected in the second
half of 2024.
Further details
For the sources of above and for more details of the Budget and tax related
measures, please visit:
https://www.budget.gov.hk/2024
https://www.ird.gov.hk
Please contact Kenneth Chau & Co. team for any questions
about Hong Kong Budget 2024/2025
Contact us: info@kennethchaucpa.com
HONG KONG BUDGET 2024/2025 www.kennethchaucpa.com

4. About Kenneth Chau & Co.
Kenneth Chau & Co, based in Hong Kong since 1960, have built
reputation and professional expertise through a team of Certi
fi
ed Public
Accountants and Certi
fi
ed Tax Advisers. Our professional team combines
many years of expertise in the areas of Audit, Taxation, and Corporate
Secretarial & Advisory services.
Kenneth Chau & Co. is a member
fi
rm of MGI Worldwide.
About MGI Worldwide
MGI Worldwide is a major international accounting network and
association of independent audit, accounting, tax, legal and consulting
fi
rms, with a secure position
fi
rmly in the top 20 global rankings of
networks and associations.
HONG KONG BUDGET 2024/2025 www.kennethchaucpa.com