PRESS RELEASE

(Source : Information Services Department)

     The Government welcomed the passage of the Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Bill 2026 by the Legislative Council today (May 13) to implement the concessionary tax measures proposed in the 2025 Policy Address and the 2026-27 Budget.
      
     A Government spokesperson said, "The measures include increasing the basic allowance, married person's allowance, single parent allowance, basic and additional child allowance, basic and additional allowance for dependent parent/grandparent and the deduction ceiling for elderly residential care expenses, as well as extending the claim period for additional child allowance for newborns starting from the year of assessment 2026/27. About 2.09 million taxpayers will benefit, reducing tax revenue by about $5.51 billion per year.
      
     "The measures also include a one-off 100 per cent reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2025/26, subject to a ceiling of $3,000 per case. It is expected to benefit about 2.12 million taxpayers and 170 000 businesses, with about 24 per cent of the taxpayers and 18 per cent of the businesses not needing to pay tax for the year of assessment 2025/26. The government revenue will be reduced by about $5.78 billion."
      
     The above legislation as passed will be gazetted on May 22. The one-off tax concessions, increased allowances and deduction ceilings will be reflected in taxpayers' final tax payable for the year of assessment 2025/26 and the tax payable for the year of assessment 2026/27 respectively.