The Legislative Council has passed the Inland Revenue (Amendment) (Tax Concessions) Bill 2020 today.
The new ordinance gives effect to the tax concessions proposed by the government in the 2020-21 Budget, reducing salaries tax, tax under personal assessment and profits tax for the year of assessment 2019/20 by 100 percent, subject to a ceiling of HK$20,000 per case.
Secretary for Financial Services and the Treasury, Christopher Hui Ching-yu, said in a statement he welcomed the passage and that the concessionary measure helps relieve the tax burden of taxpayers.
"The Inland Revenue Department will reflect the tax reductions in the tax demand notes to be issued; application is not required," he said.
The concessionary measure will benefit 1.95 million taxpayers of salaries tax and tax under personal assessment, and 141,000 tax-paying corporations and unincorporated businesses. The government revenue in 2020-21 will be reduced by HK$20.8 billion accordingly.