Tax measures proposed in 2025-26 Budget
In the Budget delivered today (February 26), the Financial Secretary proposed the following tax measures:
(1) Providing a one-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2024/25 by 100 per cent, subject to a ceiling of $1,500 per case.
This measure will benefit 2.14 million taxpayers liable to salaries tax and tax under personal assessment and 165 400 businesses. The government revenue will be reduced by $3.1 billion.
The proposed reduction will reduce the amount of tax payable by taxpayers for the year of assessment 2024/25. Taxpayers should still file their profits tax returns and tax returns for individuals for the year of assessment 2024/25 as usual. The government will introduce the Inland Revenue (Amendment) (Tax Concessions) Bill 2025 into the Legislative Council. Upon enactment of the relevant legislation, the Inland Revenue Department will effect the reduction in the final assessment.
The proposed tax reduction will only be applicable to the final tax for the year of assessment 2024/25, but not to the provisional tax of the same year. Therefore, taxpayers are required to pay the provisional tax on time as stipulated in the demand notes that have been issued to them. The provisional tax paid will be applied in payment of the final tax for the year of assessment 2024/25 and provisional tax for the year of assessment 2025/26. The excess balance, if any, will be refunded.
The proposed tax reduction is not applicable to property tax. Nevertheless, individuals with rental income, if eligible for personal assessment, may enjoy such a reduction under personal assessment.
A taxpayer who is separately chargeable to salaries tax and profits tax can enjoy tax reduction under each of the tax types. A taxpayer having business profits or rental income may elect for personal assessment in their tax returns for the year of assessment 2024/25. The reduction will then be calculated based on the tax payable under personal assessment. It may be different from the amount of tax reduction a taxpayer would have got had he / she not elected for personal assessment. The exact amount will be assessed case by case.
(2) Raising the maximum value of properties chargeable to a stamp duty of $100 from $3 million to $4 million.
The new value bands will be applicable to any conveyance on sale or agreement for sale of residential or non-residential property transaction executed on or after February 26, 2025. The Government will introduce the Stamp Duty (Amendment) Bill 2025 (the Bill) into the Legislative Council to take forward the proposal. To benefit buyers of properties from the measure as soon as possible, the Chief Executive has made the Public Revenue Protection (Stamp Duty) Order 2025 under the Public Revenue Protection Ordinance (Cap. 120) to give force and effect of law to the Bill before its enactment.
Details of the above proposed tax measures and examples of tax calculations are available on the website of the Inland Revenue Department (www.ird.gov.hk) and can be obtained through the fax hotline 2598 6001.
Labour Department highly concerned about fatal work accident that happened in Kai Tak today
The Labour Department (LD) is highly concerned about a fatal work accident that happened at a construction site in Kai Tak this afternoon (January 12). While a male worker was detaching the lifting gear connected to the top of a water tank, the water tank displaced suddenly, trapping the worker between the water tank and a bored pile casing nearby. He was certified dead later in hospital. The LD is saddened by the death of the worker and expresses its deepest sympathy to his family.
The LD's spokesman said, "We commenced an immediate on-site investigation as soon as we were notified of the accident and have issued suspension notices to the contractors concerned, suspending the use of mobile cranes for lifting operation at site concerned. The contractors cannot resume the work process until the LD is satisfied that suitable measures to abate the relevant risks have been taken."
The spokesman added, "We will complete the investigation as soon as possible to identify the cause of the accident, ascertain the liability of the duty holders and recommend improvement measures. We will take actions pursuant to the law if there is any violation of the work safety legislation."
To prevent workers from being struck or trapped by loads when engaged in unrigging process, the LD reminds employers to (i) ensure that the place supporting the loads is secure; and (ii) formulate proper unrigging methods for detaching lifting gear so as to prevent displacement of the objects in the course of unrigging operations.
The general duty provisions of the Occupational Safety and Health Ordinance require employers to provide safe working environments, plant and systems of work for their employees. Those who contravene the relevant provisions are liable to a maximum fine of $10 million and imprisonment for two years.
In regard to today's accident, the LD will issue a Work Safety Alert through its mobile application "OSH 2.0", website and email, giving a brief account of the accident concerned to duty holders, workers' unions, professional bodies of safety practitioners and others, and reminding the industry of the importance of following safety precautionary measures to prevent a recurrence of similar accidents.
The LD will also remind the employer concerned of the liability for employees' compensation under the Employees' Compensation Ordinance, assist family members of the deceased to claim employees' compensation and closely follow up on the case. For those with financial difficulties, the LD will assist them to apply for appropriate emergency funds. Subject to the needs and wishes of family members of the deceased, the LD will also liaise with the Social Welfare Department for financial or other assistance.
For the sake of securing the safety and health of employees at work, the LD appeals to employers to provide plant and systems of work that are safe and without risks to health. Employees should co-operate with their employers, adopt all safety measures and use personal protective equipment provided properly to avoid endangering their own work safety and that of other workers.
Source: AI-found images
