CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Hong Kong To Reduce Salaries Tax To 15%

Hong Kong To Reduce Salaries Tax To 15%

by Mary Swire, Tax-News.com, Hong Kong

12 October 2007


Hong Kong Special Administrative Region (HKSAR) Chief Executive, Donald Tsang, has announced cuts in both salaries and profits taxes in 2008-09, much to the relief of taxpayers in the jurisdiction.

The announcement was made during Mr Tsang's Policy Address to the Legislative Council - the first since his reelection as HKSAR Chief Executive in March 2007.

Mr Tsang said the consolidated surplus for 2006-07 is about $3.5 billion higher than the revised estimate in the 2007-08 Budget. To date, public revenue figures for 2007-08 are better than expected in some areas.

Tsang was quoted by Chinadaily as announcing that: "Given the significance of profits tax on the Government's revenue, I intend to adopt a prudent approach by initially offering a one percentage point cut to 16.5 percent in 2008-09."

These measures will, according to Mr. Tsang, cost the Government about $5 billion a year.

Mr. Tsang added that if the economy remains robust and public finances sound "we will consider further profits tax relief".

To conclude, Mr. Tsang announced that rates for the last quarter of the 2007-08 financial year would be waived, subject to a ceiling of $5,000 for each rateable tenement.

The move will cost the Government $2.6 billion.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »