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2024-25 Budget and Tax Measures

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The 2024-25 budget, released by the Financial Secretary of Hong Kong, sets a roadmap for the government. This year, the budget aims to strengthen the city’s recovery, stimulate economic growth, and solidify Hong Kong’s position as a thriving global financial hub.

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 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$2200 for financial year 2024/25.
  7. One-off reduction of profits tax subject to a ceiling of HK$3000 per case.
  8. Allocate HK$100 million to promote the sustainable development of financial services, including green and sustainable finance, fintech, asset and wealth management, headquarter business and risk management.
  9. New Capital Investment Entrant Scheme (new CIES) will invite applications from eligible investors with at least HKD 27 million in qualifying assets and place HKD 3 million into a new CIES Investment Portfolio. Applicants may apply to reside in and pursue development in Hong Kong.

Salaries (Personal) Tax

The progressive tax rate for salary income remains as below for the financial year 2024/25.

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 2023/24, subject to a ceiling of HK$3,000 per case.

Standard Rate

Year of Assessment

2017/18 to 2023/24

2024/25*

Standard Rate

15%

–

Two-tiered Standard Rates
On the first $5,000,000 of net income

–

15%

Remainder

–

16%

* Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2024-25 Budget.

Other Key Proposals

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

  • Inject HK$500 million with launch of “E-commerce Easy”. Provide up to HK$1 million per enterprise for implementing e-commerce projects in the Mainland.
  • Extend the application period for 80% and 90% Guarantee products under the SME Financing Guarantee Scheme till the end of March 2026. The total commitment under this scheme will increase by HK$10 billion.
  • SMEs in the Food and beverage and retail industries to be invited to select ready-to-use solutions under the Digital Transformation Support Pilot Programme.
  • Allocate over HK$1.09 billion to strengthen tourism development and organize events.
  • Allot HK$100 million to boost more than 80 mega-events promotions over next 3 years.
  • Allocate HK$65 million to concessionary measures for Hong Kong-registered ships that have attained a high rating under international standards of decarbonization.
  • Allocate HK$ 300 million to launch business version of “iAM Smart” to enable authentication of identity and verification of signature of enterprises using electronic government services or conducting online business transactions in a secure, convenient and efficient manner.
  • Allocate HK$3 billion to Cyberport for launch of AI Subsidy Scheme to support local universities, R & D institutes and enterprises to leverage the Centre’s computing power and achieve scientific breakthroughs.
  • Launch the New Industrialization Acceleration Scheme this year and provide enterprises with up to HK$200 million on matching basis.
  • Allocate HK$2 billion to support presence of InnoHK research clusters
  • Allot HK$200 million to support incubation and acceleration programmes to start-ups engaging in life and health technology.
  • Earmark HK$3 billion to launch a Frontier Technology Research Infrastructure Support Scheme.
  • Provide up to HK$16 million to each Technology Transfer Office of 8 UGC-funded universities.
  • HK$45 million to support Hong Kong Productivity Council in establishing and operating WIPO Technology and Innovation Support Centre for the Participation in the programme of World Intellectual Property Organization.
  • Inject HK$1.4 billion and HK$2.9 billion into the Film Development Fund and the CreateSmart Initiative to support projects in various areas such as films, arts and design.
  • Inject additional funding of HK$ 134 million to support “Knowing More About IT” programme” for the provision of subsidies of up to HK$ 300,000 for each publicly funded primary school in next 2 academic years.
  • Allocate additional funding of HK$12 million to Intellectual Property over next 3 years, to prepare for the introduction of regulatory arrangements for local patent agent services to enhance professionalism and support the development of the original grant patent system.

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

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