Hong Kong set to forgo HK$5 billion in tax revenues after reform to ease burden on SMEs: finance chief
Move chimes with city leader’s election pledge to lower tax rate for the first HK$2 million of corporate profits to 10 per cent, from 16.5 per cent
Hong Kong is preparing to roll out its first major profits tax reform in decades that will cost the government about HK$5 billion in annual revenue to ease the burden on smaller businesses.
Chan said the new regime would not complicate the current system, but estimated the government would have to forgo about HK$5 billion in annual tax revenue, or about 3.8 per cent of the total amount.
However, the launch date would depend on the approval process in a deeply divided Legco, where opposition pan-democrats have regularly filibustered bills as part of a widening political rift with their pro-establishment colleagues and the government.