HK Revenue Bill To Be Tabled To LegCo In May

by Mary Swire, for LawAndTax-News.com, Hong Kong

28 April 2008

The Revenue Bill 2008, which seeks to implement a number of the measures announced in the 2008-09 Budget, has been gazetted and will be tabled to lawmakers on 7th May.

The Financial Services & the Treasury Bureau on Friday revealed that the Hotel Accommodation Tax Ordinance and the Inland Revenue Ordinance will be amended to effect the relevant revenue proposals.

The proposal to waive the hotel accommodation tax will be effected by amending the Hotel Accommodation Tax Ordinance, and will come into effect on 1st July, according to the department.

Other proposals relating to salaries tax, tax under personal assessment, profits tax and property tax will be effected by amending the Inland Revenue Ordinance.

The proposal to waive the hotel accommodation tax will cost the Government HKD470mn a year, while the suggestion to lower the standard rate and corporate tax rate will cost the Government about HKD5.36bn a year.

The plan to increase personal allowances and widen tax bands will cost the Government around HKD2.31bn a year, while the proposal to increase the deduction ceiling for approved charitable donations will cost the Government approximately HKD80mn a year.

The suggestion to reduce salaries tax, tax under personal assessment, profits tax and property tax for 2007-08 by 75%, subject to a ceiling of HKD25,000 for each case, will cost the Government in the region of HKD14.81bn in 2008-09.

The government acknowledged that it is difficult to assess the financial implications of allowing a more concessionary profits tax deduction for capital expenditure on environment-friendly facilities, but suggested that the impact is not expected to be significant.

Recommended