Hong Kong - a series of new tax-related measures
Last week Hong Kong lawmakers passed several tax measures announced in the Budget for 2017-18 that are expected to reduce Hong Kong tax revenue by 2 billion HKD.
The following changes have been implemented, commencing from the year of assessment 2017/18:
- width of marginal salaries tax bands was widened from 40,000 to 45,000 HKD
- disabled dependent allowance was increased from 66,000 to 75,000 HKD
- dependent brother/sister allowance was increased from 33,000 to HKD37,500 HKD
- entitlement period for home loan interest deduction was extended from 15 to 20 years
- deduction ceiling for self-education expenses was raised from 80,000 to 100,000 HKD
These changes will be automatically applied by Inland Revenue Department in calculating the 2017/18 provisional salaries tax.