Profits Tax

• Profits tax rates for companies(16.5%) and unincorporated businesses (15%) remain unchanged.
• Consider extending the scope of tax deduction for capital expenditure
• incurred on the purchase of intellectual property rights to cover more types of
• intellectual property rights as appropriate.
• Amend the tax law to allow, under specified conditions, interest deductions
• under profits tax for corporate treasury centres and reduce profits tax for specified treasury activities by 50%.

Salaries Tax

• No change in the standard tax rate, progressive tax rates and the income bands for progressive tax rates.
• Increase the basic and additional child allowances to HK$100,000 (for each child).
• Provide tax concession for subscribers to regulated health/medical insurance products.

Government Fees

• Waive the licence fees for travel agents, hotels and guest houses,restaurants, hawkers and operators with restricted food permits for six months.
• Waive vehicle examination fee once for the renewal of vehicle licences of
• taxis, light buses, franchised and non-franchised buses, goods vehicles, trailers and special purpose vehicles within a year.

One-off Measures

• Waive 75% of profits tax for 2014/15 (subject to a HK$20,000 ceiling) to be
• deducted from the taxpayer’s final tax payable for the year.
• Waive 75% of salaries tax and tax under personal assessment for 2014/15, subject to a ceiling of HK$20,000, to be deducted from the taxpayer’s final
• tax payable for the year.
• Waive rates for the first two quarters of 2015/16, subject to a ceiling of
• HK$2,500 per quarter for each rateable property.
• Pay one month’s rent for the lower income tenants of public housing,
• excluding certain wealthier tenants and non-elderly tenants.
• Provide two additional months of Comprehensive Social Security Assistance
• (CSSA) payment, Old Age Allowance, Old Age Living Allowance and Disability Allowance.

Others

• Extend the application period for special concessionary measures under
• SME Financing Guarantee Scheme to 29 February 2016.
• Inject $1.5 billion in to the SME Export Marketing and Development Funds.
• Inject additional $400 million in to the Create Smart Initiative to support
• different sectors of the creative industries.
• Earmark $23 million in the coming three years for offering intellectual
• property consultation, manpower training and other services to SMEs. • Issue iBond (i.e. inflation-linked retail bonds) worth up to $10 billion.
• Spend $91 billion to add 2,800 hospital beds and support public-private
• partnership initiatives.
• Set aside $50 billion to provide better retirement protection for the elderly
• in need.
• Establish a Future Fund to serve as long-term savings. The fund will be
• placed in long-term investments for higher returns.
• The 2015/16 Land Sale Programme will include 29 residential sites (of
• which 16 are new ones), four commercial/business sites and one site for hotel development.