(Source : Information Services Department)
Gazettal of Inland Revenue (Amendment) Bill 2018
The Inland Revenue (Amendment) Bill 2018 will be gazetted on March 9. The Bill seeks to implement concessionary revenue measures proposed in the 2018-19 Budget.
These measures include the following adjustments to salaries tax and tax under personal assessment, with effect from the year of assessment 2018-19:
(a) increasing the number of tax bands from four to five with marginal rates at 2 per cent, 6 per cent, 10 per cent, 14 per cent and 17 per cent, and widening the tax bands from $45,000 to $50,000 each. These adjustments will benefit 1.34 million taxpayers and reduce tax revenue by $4.09 billion a year;
(b) increasing both the child allowance for each eligible child and the additional child allowance in respect of each child born in the year of assessment from $100,000 to $120,000. This measure will benefit 335 000 taxpayers and reduce tax revenue by $1.31 billion a year;
(c) increasing both the dependent parent/grandparent allowance and the additional dependent parent/grandparent allowance for each eligible parent/grandparent from $46,000 to $50,000 (for those aged 60 or above, or with disabilities) and from $23,000 to $25,000 (for those aged 55 or above but below 60);
(d) raising the deduction ceiling for elderly residential care expenses for each eligible parent/grandparent from $92,000 to $100,000;
The measures in (c) and (d) will benefit 607 000 taxpayers and reduce tax revenue by $580 million a year; and
(e) introducing a new personal disability allowance of $75,000 for eligible taxpayers. This measure will reduce tax revenue by $450 million a year.
The above adjustments, with the number of estimated beneficiaries, will together reduce tax revenue by $6.43 billion each year.
The 2018-19 Budget also proposes a one-off reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2017-18 by 75 per cent, subject to a ceiling of $30,000 per case. The reduction will be reflected in taxpayers' final tax payable for the year of assessment 2017-18. The proposed one-off reduction will benefit 1.88 million taxpayers of salaries tax and tax under personal assessment, and 142 000 tax-paying corporations and unincorporated businesses. The revenue forgone will amount to $25.5 billion in total.
The Bill will be introduced into the Legislative Council on March 21.
Ends/Wednesday, March 7, 2018
Issued at HKT 12:00