Category Taxation in Hong Kong

Hong Kong Spends Surplus on Social Boosts

February 28, 2013 Taxation in Hong Kong

Hong KongHONG KONG – Hong Kong has seen an unexpected budget surplus, and will now distribute the extra funds back to its citizens in the form of social assistance.

On February 27th the Financial Secretary of Hong Kong John Tsang unveiled the latest government budget for the territory, announcing nearly HKD 33 billion in once-off increases to social spending, welfare payouts and assistance programs for low income individuals.

John Tsang revealed that, while the government had anticipated a budget deficit of HKD 3.4 billion for the fiscal year ending March 31st, the better than forecast economic growth of Hong Kong and unexpectedly high tax collections have led to a surplus of HKD 64.9 billion for the year.

The advantageous financial position has allowed the government to expand its spending on soci...

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Vacant Property Taxed Mulled in Hong Kong

January 21, 2013 Taxation in Hong Kong

Hong Kong government buildingHONG KONG – Residents of Hong Kong could soon breathe a sigh of relief as new measures are mulled to ease the city’s shortage of houses.

In a radio interview conducted on January 20th the Chief Executive of Hong Kong Leung Chun-ying said that in the near future a tax may be imposed on newly built properties which are not sold to the public but are left vacant.

The proposed measure is aimed at addressing the cities growing housing problem by penalizing property developers who intentionally withhold large numbers of houses from the market in order to manipulate housing prices and artificially increase sale prices and rental costs.

Leung Chun-ying explained that property developers purchase land from the Hong Kong government under the condition that they complete construction of an allotted ...

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Foreigners To Face More Tax in Hong Kong

October 28, 2012 Taxation in Hong Kong

john tsangHONG KONG – Foreign investors looking to enter the property market in Hong Kong will now face new tax barriers, as the local government looks to quell the potential risk of a bubble in the housing market.

From October 26th a new 15 percent tax was imposed in Hong Kong on the purchase of property by local and foreign corporate entities and by all individuals who do not permanently reside in Hong Kong.

At the announcement of the new tax the Financial Secretary of Hong Kong John Tsang also revealed that the tax rate applicable on the resale of property, which is already instated in Hong Kong, was also raised by 5 percent, with all homes sold within the first six month of purchase now facing a tax of 20 percent, and sales of homes held by investors for a period of between 7 and 12 months subj...

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Extensive Tax Cuts in Hong Kong

February 3, 2012 Taxation in Hong Kong

John TsangThe government of Hong Kong has put forward a plan for the budget for the coming financial year containing several new tax measures aimed at reducing the tax burdens on taxpayers.

On February 1st the Financial Secretary of Hong Kong John Tsang outlined the budget plan for the 2012 – 2013 financial year, containing several tax changes which are expected to benefit more than 1.62 million taxpayers.

One of the primary changes outlined in the budget plan is a 75 percent reduction to profits taxes and salary taxes for the 2011 – 2012 financial year. If approved, the changes will cut the government’s revenues by approximately HKD 10.02 billion in the coming financial year.

In order to further reduce tax burdens , the basic allowance, married couple allowance, and dependant allowances have been i...

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Hong Kong Reports Tax Revenues Growths

November 2, 2011 Taxation in Hong Kong

Tax revenue in Hong KongHONG KONG – Hong Kong has seen a bumper year for tax collections, with annual tax revenues up by 16.7 percent.

On November 2nd the Inland Revenue Department (IRD) of Hong Kong released its Annual Report for the 2010 – 2011 fiscal year, showing a significant improvement in tax revenues compared to the previous year.
According to the report, Hong Kong’s cumulative tax collections for the year reached HKD 209 billion. Corporate tax collections provided the largest contribution to the government’s budget, reaching HKD 93.2 billion. Personal income tax collections were at their highest ever recorded level, at HKD 44.3 billion. Stamp duties brought in an additional HKD 51 billion in revenues.

The cumulative tax collections for the year were 16.7 percent higher than last year...

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