Profits Tax
2024-25* (unchanged) |
2023-24 |
|
|---|---|---|
|
Corporations |
Tax Rate |
Tax Rate |
|
- First HK$2m assessable profits |
8.25% |
8.25% |
|
- The remainder |
16.5% |
16.5% |
|
Unincorporated business |
Tax Rate |
Tax Rate |
|
- First HK$2m assessable profits |
7.5% |
7.5% |
|
- The remainder |
15% |
15% |
*For 2023-24, the profits tax is proposed to be reduced by 100%, subject to a ceiling of HK$3,000. (2022-23: HK$6,000).
Salaries Tax
Salaries tax is charged at the lower of net chargeable income (Total Income – Deductions – Allowances) at progressive rates or net total income (Assessable Income – Deductions) at standard rate.
Standard rate remains the same at 15% for 2023-24.
Proposed two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the 2024-25 assessment year
Net income (Total Income - Deductions) |
Tax rates |
|---|---|
|
$5 million or below |
15% (remains unchanged) |
|
Above $5 million |
First $5 million: 15% Portion exceeding $5 million: 16% |
Progressive rates
Income |
2024-25* (unchanged) |
2023-24 |
|---|---|---|
|
First HK$50,000 chargeable income |
2% |
2% |
|
Next HK$50,000 |
6% |
6% |
|
Next HK$50,000 |
10% |
10% |
|
Next HK$50,000 |
14% |
14% |
|
Remainder |
17% |
17% |
*For 2023-24, the salaries tax and tax under personal assessment are proposed to be reduced by 100%, subject to a ceiling of HK$3,000. (2022-23: HK$6,000)
Allowances
2024-25 (unchanged) |
2023-24 |
|
|---|---|---|
|
Personal allowance |
||
|
Basic |
HK$132,000 |
HK$132,000 |
|
Married |
HK$264,000 |
HK$264,000 |
|
Single Parent |
HK$132,000 |
HK$132,000 |
|
Disabled |
HK$75,000 |
HK$75,000 |
|
Child allowances (1st to 9th child) (each) |
||
|
In the Year of Birth |
HK$260,000 |
HK$240,000 |
|
Other years |
HK$130,000 |
HK$120,000 |
|
Dependent parent/grandparent allowances (each) |
||
|
Basic (Age 60 or above) |
HK$50,000 |
HK$50,000 |
|
Additional allowance (for dependent living with taxpayer) (Age 60 or above) |
HK$50,000 |
HK$50,000 |
|
Basic (Age 55-59) |
HK$25,000 |
HK$25,000 |
|
Additional allowance (for dependent living with taxpayer) (Age 55-59) |
HK$25,000 |
HK$25,000 |
|
Dependent brother/sister allowance (each) |
HK$37,500 |
HK$37,500 |
|
Disabled dependent allowance (each) |
HK$75,000 |
HK$75,000 |
Deductions (Maximum Limits)
2024-25 (unchanged) |
2023-24 |
|
|---|---|---|
|
Self-Education expenses |
HK$100,000 |
HK$100,000 |
|
Home loan interest |
HK$100,000 (20 years of entitlement period) |
HK$100,000 (20 years of entitlement period) |
|
Elderly residential care expenses |
HK$100,000 |
HK$100,000 |
|
Mandatory contributions to recognized retirement schemes |
HK$18,000 |
HK$18,000 |
|
Approved charitable donations |
35% of assessable income |
35% of assessable income |
|
Annuity premiums and MPF voluntary contributions |
HK$60,000 |
HK$60,000 |
|
Premiums paid under voluntary Health Insurance Scheme |
HK$8,000 |
HK$8,000 |
Property Tax
The standard rate (for non-corporate owners) remains at 15% for 2024-25.
