Fiscal measures and tax adjustments: Key updates for 2025/26

Support measures have been significantly reduced due to the fiscal deficit, with a tax rebate now set at HK$1,500 and a rates concession for both domestic and commercial properties limited to HK$500.

Financial chief Paul Chan Mo-po said the government will implement a rate concession for domestic and non-domestic properties in the first quarter of 2025/26, capped at HK$500 per property.

This initiative is projected to impact 3.12 million domestic properties, leading to a decrease in government revenue by HK$1.5 billion, and 430,000 non-domestic properties, which will result in a revenue loss of HK$200 million.

Also, the salaries tax and tax under personal assessment for the 2024/25 assessment year will see a 100 percent reduction, limited to a ceiling of HK$1,500.

This change will benefit 2.14 million taxpayers, causing a revenue reduction of HK$2.9 billion.

The government will also provide an allowance to eligible social security recipients equivalent to half a month’s standard Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance, or Disability Allowance, incurring an additional expenditure of about HK$3.1 billion, consistent with last year.

To alleviate the financial burden on buyers of lower-value residential and non-residential properties, Chan announced an increase in the maximum property value eligible for a HK$100 stamp duty from HK$3 million to HK$4 million, effective immediately.

This measure is expected to benefit around 15 percent of property transactions and reduce government revenue by about HK$400 million annually.

(Cheng Wong)