Tax Bill Passage Welcomed

Secretary for Financial Services & the Treasury Christopher Hui welcomed the passage of the Inland Revenue (Amendment) (Tax Concessions) Bill 2020 by the Legislative Council today.

The new ordinance gives effect to the tax concessions proposed by the Government this year.

Under the arrangement, salaries tax, tax under personal assessment and profits tax for the year of assessment 2019-20 will be reduced by 100%, subject to a ceiling of $20,000 per case.

Mr Hui said the concessionary measure helps relieve the tax burden of taxpayers.

Application is not required for the tax reductions. The Inland Revenue Department will reflect the reductions in tax demand notes to be issued, he added.

The measure will benefit 1.95 million people who pay salaries tax and tax under personal assessment, and 141,000 tax-paying corporations and unincorporated businesses.

Government revenue in 2020-21 will be reduced by $20.8 billion accordingly.