Investing for the future by planning ahead for the medium- and long-term development of the Hong Kong economy
Introducing a tax deduction for domestic rental expenses
Before the enactment of the relevant legislation, relevant taxpayers should file their profits tax returns for the year of assessment 2021-22 as usual. Upon enactment of the relevant legislation, the IRD will calculate the reduction in the final assessment. For any final assessment for 2021-22 issued before the enactment of the law, the IRD will make a reassessment after the enactment. Taxpayers are not required to make any applications or enquiries to the IRD.
A taxpayer who is separately chargeable to salaries tax and profits tax can enjoy tax reduction under each of the tax types.
Taxpayers should file their profits tax returns and tax returns for individuals for the year of assessment 2021/22 as usual.
Before the enactment of the relevant legislation, taxpayers should file their profits tax returns for the year of assessment 2021-22 as usual.
The proposed tax reduction will only be applicable to the final tax for the year of assessment 2021/22, but not to the provisional tax of the same year. Therefore, taxpayers are still required to pay their provisional tax on time despite the proposed reduction measure.
Businesses that have paid the registration fees for the Waiver Period but are not required to renew their certificates in the Waiver Period can also benefit from the concessionary measure by getting a refund of the relevant amount of business registration fees paid in respect of the Waiver Period.
No application is required. The IRD will directly send refund cheques to eligible businesses for the business registration fees paid in respect of the Waiver Period. The refund arrangement will be announced after the relevant legislative amendment is passed by the LegCo.
Continuing to waive 75 percent of water and sewage charges payable by non‑domestic households for eight months until November 30, 2022, subject to a monthly ceiling of HK$20,000 and HK$12,500, respectively, per household.
Extending the waivers/concessions of the existing 34 groups of government fees and charges for 12 months starting from October this year. This measure will benefit a wide range of sectors, such as aviation, maritime, logistics, retail, catering, agriculture and fisheries, construction, tourism, and entertainment.
Continuing to grant the 75 percent rental or fee concession currently applicable to eligible tenants of government premises and eligible short‑term tenancies and waivers under the Lands Department for six months until September 30, 2022. During the period, tenants who have to close their properties at the request of the Government will continue to receive full rental waiver for the duration of the closure.
To further promote the development of life and health technology in Hong Kong, the 2022-23 Budget proposes to earmark HK$10 billion to provide more comprehensive support to relevant enterprises and set up the InnoLife Healthtech Hub in the Hong Kong‑Shenzhen Innovation and Technology Park.