Secretary for Financial Services & the Treasury James Lau welcomed the passage of the Inland Revenue (Amendment) (Tax Concessions) Bill 2019 by the Legislative Council today.
The new ordinance gives effect to the tax concessions proposed by the Government this year.
Under the arrangement, salaries tax, tax under personal assessment and profits tax for the year of assessment 2018-19 will be reduced by 100%, subject to a ceiling of $20,000 per case.
Mr Lau said: “The concessionary measure helps relieve the tax burden of taxpayers.”
Application is not required for the tax reductions. The Inland Revenue Department will reflect the reductions in tax demand notes to be issued.
The measure will benefit 1.91 million taxpayers of salaries tax and tax under personal assessment, and 145,000 tax-paying corporations and unincorporated businesses.
Government revenue in 2019-20 will be reduced by $20.7 billion accordingly.
Mr Lau added that taxpayers anticipating a decrease of more than 10% in their net chargeable income or assessable profits for current year of assessment may apply for a holding over of the whole or part of the provisional tax.
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