(February 25, 2015) 

On February 25, 2015 the Inland Revenue Department of Hong Kong published a high-level summary of the tax measures as proposed by the Financial Secretary in his 2015-2016 Budget.

The tax measures as proposed by the Hong Kong Financial Secretary include: 

• Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2014/15;

• Increasing child allowances;

• Providing tax concessions to corporate treasury centres;

• Profits tax exemption for private equity funds.

   

Providing tax concessions to corporate treasury centres

In this respect the summary notes that on profits tax, the Hong Kong Financial Secretary proposed to allow, under specified conditions, interest deductions under profits tax for corporate treasury centres and reducing profits tax for specified treasury activities by 50 per cent. This measure will be effected by amending the Inland Revenue Ordinance.

Profits tax exemption for private equity funds

According to the summary as provided by the Hong Kong Inland Revenue Department, the Hong Kong Government plans to table a bill in the Legislative Council later to allow private equity funds to enjoy profits tax exemption available to offshore funds.

Click here to be forwarded to the high-level summary of the tax measures as proposed by the Financial Secretary in his 2015-2016 Budget as published on the website of the Hong Kong Inland Revenue Department.

Click here to be forwarded to a press release as issued by the Hong Kong Inland Revenue Department in this respect.

Click here to be forwarded to the webpage of the Hong Kong Government that is dedicated to the 2015-2016 Budget.

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