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The Inland Revenue (Amendment) Bill 2014, to implement the concessionary revenue measures proposed in the 2014-15 Budget, was gazetted in Hong Kong on April 25, and will be tabled before the Legislative Council (LegCo) on May 7.
Those measures include increasing both the allowance and additional allowance for maintaining a dependent parent or grandparent; raising the deduction ceiling for elderly residential care expenses; and reducing salaries tax, tax under personal assessment, and profits tax for the year of assessment 2013-14 by 75 percent, subject to a ceiling of HKD10,000 (USD1,290) per case.
"Subject to the passing of the legislation by the LegCo, the proposals for increasing the dependent parent/grandparent allowances and the deduction ceiling for elderly residential care expenses under salaries tax and tax under personal assessment will take effect for the year of assessment 2014-15 onwards. About 550,000 taxpayers will benefit from the proposals," a Government spokesman said.
In the 2014-15 Budget, the Government proposed a number of one-off relief measures, aimed primarily at helping the public to cope with short-term financial pressures, or as a counter-cyclical measure to preserve economic stability and short-term employment.
The one-off reduction of salaries tax, tax under personal assessment, and profits tax will cost about HKD10.2bn, and will be reflected in the taxpayers' final tax payable for the year of assessment 2013-14. About 1.74m taxpayers will benefit from the cut in salaries tax and tax under personal assessment, while the reduction of profits tax will benefit about 126,000 tax-paying companies and unincorporated businesses.
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