Hong Kong Tax Changes for 2017-18
Estimated reading time 2 minutes
As Hong Kong tax filing deadlines approach in early May and June (see below), it is important for management/HR and as well as international assignees to be aware of recent tax changes to profits, salaries and property taxes.
Amongst the changes are the following important tax reliefs:
- Tax Relief and Reduction of Business Operation: a one-off tax deduction for profits tax for 2016-17 by 75% subject to a ceiling of $20,000 so as to benefit all business operators (this is the same relief in the year of 2015-16);
- Tax Relief for Individuals: one-off tax deduction for salaries tax for 2016-17 by 75% subject to a ceiling of $20,000.
- Key personal allowances remain unchanged from 2016-2017 for the tax year 2017-2018 however:
|
Personal allowances |
2016-17 |
2017-18 |
|
Basic allowance |
$132,000 |
$132,000 |
|
Married person’s allowance |
$264,000 |
$264,000 |
|
Child allowance (each child) |
$100,000 |
$100,000 |
|
Additional child allowance in the year of birth (each child) |
$100,000 |
$100,000 |
What action is required? And by when?
International assignees in Hong Kong and companies should ensure they understand the criteria for tax reliefs and include the tax claim(s) on their Individual Tax Return BIR60 for 2016/17, and seek advice if unsure.
Key filing deadlines are as follows:
- 2 May 2017: Filing of the employer's returns BIR56A and IR56B for 2016/17
- 2 June 2017: Filing of the individual tax return BIR60 for 2016/17
For more information regarding the filing of tax returns for either employers or individuals please contact Anssen Consulting through either Janssen Chan on +852 3428 2385 or Brian Cheng.
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