This update was first published in the April 2012 China edition of Accounting and Business magazine.
The financial secretary delivered the 2012–13 Budget on 1 February 2012 in which a package of tax measures were proposed. One of the measures is a 75% reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2011–12, subject to a ceiling of HK$12,000 per case.
In addition, the financial secretary proposed:
- To waive business registration fees for 2012–13.
- To abolish capital duty levied on local companies.
- To waive rates for 2012–13, subject to a ceiling of HK$2,500 per quarter for each rateable property.
- To increase personal allowances from HK$108,000 to HK$120,000.
- To increase dependent parent or grandparent allowance from HK$36,000 to HK$38,000.
- To raise child allowance from HK$60,000 to HK$63,000.
- To increase the deduction ceiling for elderly residential care expenses from HK$72,000 to HK$76,000.
- To extend the number of years of deduction for home loan interest from 10 to 15 years.
- To increase the maximum amount of deduction for mandatory contributions to Mandatory Provident Fund schemes from HK$12,000 to HK$15,000.
These measures will take effect from the year of assessment 2012–13.
Sonia Khao, head of technical services, ACCA Hong Kong