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Reform that will see HK$5 billion in tax breaks for start-ups and small businesses to go before Legislative Council in 2018
Proposal to forgo HK$5 billion in revenue to help small businesses greeted with hope and caution
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Hong Kong could see its first major profits tax reform aimed at easing the burden on smaller businesses take effect in the second half of next year, the financial services and treasury bureau chief said on Wednesday.
James Lau said the overall economic benefits would outweigh the lost tax revenues – estimated to be about HK$5 billion annually – as the money would be better used in the market than in government coffers.
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Chief Executive Carrie Lam Cheng Yuet-ngor proposed a two-tier tax system in her election manifesto that would lower the tax rate for the first HK$2 million of profits to 10 per cent, from the current 16.5 per cent.
Details of the proposal could be announced before October, when she is due to deliver her maiden policy address.
I hope Legco can see the pluses
Lau said the administration planned to submit a bill for legislative approval in the second half of next year.
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