Budget Tax Exemptions Details

1. Property rate reduction for 2025/26

• Residential properties :

  
  

  • Scope of reduction : Residential property rates for the first quarter of 2025/26.

    
    

  • Upper limit : The upper limit of the credit limit per household is 500 yuan.

    
    

  • Purpose : To reduce the daily expenditure burden on residential property owners.

    
    
  
  

• Non-residential properties :

  
  

  • Scope of reduction : Non-residential property rates in the first quarter of 2025/26.

    
    

  • Cap : The maximum amount of the tax relief for each non-residential property is $500.

    
    

  • Purpose : To support commercial and industrial property owners and promote economic activity.

    
    
  
  

2. Tax concessions for the year of assessment 2024/25

• Salaries Tax and Personal Assessment :

  
  

  • Reduction : 100% of salaries tax and tax under personal assessment for the year of assessment 2024/25.

    
    

  • Upper limit : The upper limit of the deduction amount per person is 1,500 yuan.

    
    

  • Eligibility : All eligible individual taxpayers.

    
    

  • Purpose : To reduce personal tax burden and increase citizens' disposable income.

    
    
  
  

• Profits Tax :

  
  

  • Reduction : 100% of profits tax for the year of assessment 2024/25.

    
    

  • Upper limit : The maximum amount of tax relief for each enterprise is 1,500 yuan.

    
    

  • Applicable to : All enterprises subject to profit tax.

    
    

  • Purpose : To support small and medium-sized enterprises and various commercial entities and promote economic recovery.

    
    
  
  

3. Adjustment of stamp duty on property transactions

• Residential and non-residential property transactions :

  
  

  • New tax rate : The ad valorem stamp duty applicable to property transactions will be adjusted to be fixed at $100 for properties valued at $4 million or less.

    
    

  • Effective time : Immediately.

    
    

  • Detailed tax rate table :

    
    

    • Up to $4,000,000 : fixed at $100.

      
      

    • $4,000,001 to $4,323,780 : $100 plus 20% of the amount over $4,000,000.

      
      

    • $4,323,781 to $4,500,000 : 1.5%.

      
      

    • $4,500,001 or above : Maintain the current tax rate arrangement.

      
      
    
    

  • Purpose : To reduce transaction costs of low-priced properties and stimulate liquidity in the real estate market.

    
    
  
  

4. Industry-specific tax incentives

• Shipping Industry :

  
  

  • Tax concessions for commodity traders :

    
    

    • Action : It is proposed to provide half tax concession to qualified commodity traders.

      
      

    • Target : Planned to be implemented by legislation in 2026.

      
      

    • Purpose : To attract more shipping-related enterprises to settle in Hong Kong and enhance the competitiveness.

      
      
    
    
  
  

• Green Development :

  
  

  • Green Methanol Tax Exemption :

    
    

    • Measure : Provide tax exemption for green methanol used for refueling.

      
      

    • Purpose : To promote the use of green fuels and support sustainable development goals.

      
      
    
    
  
  

• Financial Industry :

  
  

  • Tax benefits for foundations and family offices :

    
    

    • Action : Develop a plan to optimize tax benefits for foundations and single family offices.

      
      

    • Purpose : To attract more fund and wealth management business and enhance Hong Kong's status as a financial centre.

      
      
    
    

  • Insurance-Linked Securities :

    
    

    • Measures : Extend the Insurance-Linked Securities Subsidy Pilot Scheme for three years.

      
      

    • Purpose : To promote innovation and development in the insurance industry.