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2023-24 Budget & Tax Measures

Financial Secretary Paul Chan Mo-po has set the 2023/24 Budget with the theme ‘Leaping forward steadily, together we bolster prosperity under our new vision’.
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Hong Kong Financial Secretary has set the 2023-24 budget earlier this year. Below is a summary of the budget report.

Profits (Corporate) Tax

  1. Corporate Tax rate for the first HK$2 million of profits is reduced to 8.25%.
  2. Corporate Tax rate on remaining profits is 16.5%.
  3. Offshore profit for Limited company in Hong Kong is not taxable by Hong Kong authority.
  4. Hong Kong has no capital gain tax and no withholding tax on payment.
  5. There is no tax on dividend.
  6. Business Registration licence fee is HK$2150 for financial year 2023/24.
  7. One-off reduction of profits tax subject to a ceiling of HK$6000 per case.
  8. Keep funding ceiling for Technology Voucher Programme as HK$600,000.
  9. Allocate HK$100 million to InvestHK for attracting more family offices to Hong Kong.
  10. Plan to introduce a new Capital Investnment Entrant Scheme.

Salaries (Personal) Tax

The progressive tax rate for salary income remains as below for the financial year 2023/24.

Personal Income

Progressive Tax Rate %

First HK$50,000

2%

Next HK$50,000

6%

Next HK$50,000

10%

Next HK$50,000

14%

Remaining income

17%

The Financial Secretary has waived 100% tax deduction for salaries tax for the year 2022/23, subject to a ceiling of HK$6,000 per case.

Other Key Proposals

The Hong Kong Government has also presented various proposals, including but not limited to the following:

  • A new scheme, known as the Capital Investment Entrant Scheme, will be introduced, allowing applicants to reside and engage in development activities in Hong Kong upon making a specified investment in the local asset market, excluding property.
  • An additional infusion of HK$500 million will be allocated to the CreateSmart Initiative, ensuring uninterrupted support for the promotion and advancement of the creative industries.
  • Set aside HK$500 million for Cyberport to initiate a Digital Transformation Support Pilot Programme, aimed at aiding small and medium enterprises (SMEs) in implementing readily available basic digital solutions. Additionally, HK$265 million will be allocated to foster the growth of smart living start-ups.
  • The Hong Kong Science and Technology Parks Corporation will allocate HK$400 million to bolster its Corporate Venture Fund, and an additional HK$110 million to inaugurate the Co-acceleration Programme.
  • A sum of HK$200 million will be allocated to the Hong Kong Tourism Board, with the purpose of securing a greater number of international meetings, conventions, and exhibitions in Hong Kong.
  • Allot HK$550 million to the Hong Kong Trade Development Council. This funding is intended to assist Hong Kong enterprises in capitalizing on opportunities that emerge from the Belt & Road Initiative and the development of the Greater Bay Area (GBA).
  • Allot HK$155 million to host the Greater Bay Area (GBA) Culture and Arts Festival in 2024. This funding will support performing arts groups and artists in Hong Kong, enabling their participation in various performances and productions within the GBA.

Should you have any questions, feel free to contact our licenced CPA and Chartered secretary at info@getstarted.hk.

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