HONG KONG – Chief Executive’s 2017 Policy Address
Hong Kong’s Chief Executive, Carrie Lam Cheng Yuet-ngor, delivered her first Policy Address yesterday, 11/10/2017. A highlighted area within the Address was the proposals surrounding the two tax measures included in her Election Manifesto focusing on:
- Preserving low tax rates, with reductions to be implemented in 2018.
- Executing a two-tier profits tax system where the profits tax rate for the first HK$2 million of profits of enterprises will be lowered to 8.25%, whilst the standard tax rate of 16.5% will remain for profits above that amount. Only one enterprise nominated by each business group is eligible for the lower tax rate.
- Encouraging enterprises to invest in R&D through the introduction of a 300% tax deduction on the first HK$2million eligible R&D expenditure, with the remainder subject to 200%.
Dependent on the passing of the legislation at the Legislative Council, it is anticipated that these proposals will be implemented within 2018.
Key contacts of Kensington Hong Kong office
Serena Kwok
Executive Director
Mobile: +852 6514 1489
Tel: +852 2146 6411
Email: serena.kwok@kensington-trust.com
Gloria Shum
Associate Director
Mobile: +852 6774 3772
Tel: +852 2146 6711
Email: gloria.shum@kensington-trust.com