Hong Kong – Budget 2023/24


  • Issue HKD5,000 electronic consumption vouchers to each eligible Hong Kong permanent resident and new arrival aged 18 or above
  • Reduce profits tax, salaries tax and tax under personal assessment for 2022/23 by HKD6,000 max.
  • Increase tax deduction for voluntary contributions for the Mandatory Provident Fund made by employers for staff over 65 years of age from the current 100% to 200% in respect of such expenditure
  • Increase basic child allowance and additional child allowance from HKD120,000 to HKD130,000
  • Provide rates concession for non-domestic and domestic properties for 2023/24 capped at HKD1,000 per quarter in the first two quarters
  • Adjust value bands of the ad valorem stamp duty payable for sale and purchase or transfer of residential and non-residential properties
  • A subsidy of HKD1,000 to each residential electricity account
  • Increase duty on cigarettes and other tobacco products by HKD0.60 per stick
  • Introduce a patent box tax incentive for patents generated via research and development activities
  • Conduct consultation and submit legislative proposals in 2023/24 to introduce a mechanism to facilitate companies domiciled overseas, particularly companies with a business focus in the Asia Pacific region, for re-domiciliation to Hong Kong
  • Introduced legislative amendments in December 2022 to profit profits tax exemption for qualifying transactions of family owned investment vehicles managed by single family offices in Hong Kong.
  • Enhance listing rules in order to strike a balance between market development and regulatory needs, including relevant arrangement in share buy-back by issuers.
  • Work with regulators to refine tax arrangements for wealth management sector and to review existing tax measures applicable to funds.
  • Introducing a bill in 4th quarter 2023 to enhance the aircraft leasing tax regime
  • Keep profits tax and salaries tax rates unchanged
  • Impose football betting duty of HKD2.4 billion for 5 years starting 2023/24
  • Plan to issue no less than HKD50 billion of Slver Bond and HKD15 billion of retail green bond in the next financial year
  • Expand the scope of Government Green Bond Programme to cover sustainable finance projects
  • Plan to apply global minimum effective tax rate on large multinational enterprise groups and implement minimum top-up tax starting from 2025 onwards
  • Put forward an enhance proposal in mid-March to provide a better guideline on whether onshore gains on disposal of equity interests are subject to tax


Should you have any questions, kindly contact Serena Kwok at serena.kwok@kensington-trust.com