HONG KONG – The Legislative Council of Hong Kong on Wednesday amended the special administrative region’s inland revenue law to implement one-off tax concessions proposed in the 2025-26 Budget.

The Inland Revenue (Amendment) (Tax Concessions) Bill will reduce salaries tax, tax under personal assessment, and profits tax for the 2024-25 year of assessment by 100 percent, subject to a ceiling of HK$1,500 per case. 

The HKSAR government welcomed the passage of the bill.

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“The tax concessions will benefit about 2.14 million taxpayers and about 165,400 taxpaying businesses,” said a government spokesperson.

About 16 percent of taxpayers and 12 percent of taxpaying businesses will not need to pay tax for the 2024-25 fiscal year, the spokesperson added.

However, the government revenue will be reduced by about HK$3.1 billion.

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The bill as passed will be published in the Government Gazette on May 9 and the tax concessions will be reflected in taxpayers' final tax payable for the 2024-25 year of assessment.