- Profits tax rates for companies (16.5%) and unincorporated businesses (15%) remain unchanged.
- Introduce profits tax concession to promote aircraft leasing and financing.
- Extend the profits tax exemption to onshore privately-offered open-ended fund companies.
- Set up a tax policy unit in the Financial Services and the Treasury Bureau to comprehensively examine the international competitiveness of Hong Kong’s tax regime and address the problem of a narrow tax base e.g. studying ways to foster the development of pillar and emerging industries through tax measures including enhanced deductions for innovation and technology expenditure.
- No change in the standard tax rate and progressive tax rates.
- Widen the marginal tax bands from HK$40,000 to HK$45,000.
- Increase the disabled dependant allowance from HK$66,000 to HK$75,000.
- Increase the dependent brother/sister allowance from HK$33,000 to HK$37,500.
- Extend the entitlement period for deduction for home loan interest from 15 to 20 years of assessment, the deduction ceiling of HK$100,000 a year remains unchanged.
- Increase the deduction ceiling for self-education expenses from HK$80,000 to HK$100,000.
- Examine to provide tax deduction for the purchase of regulated health insurance products.
- Waive the licence fees for travel agents, hotels and guesthouses, restaurants, hawkers and operators with restricted food permits for one year.
- Waive 75% of profits tax for 2016/17 (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 2016/17, 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 four quarters of 2017/18, subject to a ceiling of HK$1,000 per quarter for each rateable property.
- Provide one additional month of Comprehensive Social Security Assistance (CSSA) payments, Old Age Allowance, Old Age Living Allowance and Disability Allowance. Similar arrangements will apply to Low-income Working Family Allowance and Work Incentive Transport Subsidy.
- Extend the application period for the special concessionary measures under the SME Financing Guarantee Scheme to 28 February 2018.
- Propose to strengthen the underwriting capacity of the Hong Kong Export Credit Insurance Corporation by raising the cap on its contingent liability under contracts of insurance from HK$40 billion to HK$55 billion.
- Set up a new committee on innovation and technology development and re-industrialisation.
- Reserve HK$10 billion for supporting innovation and technology development in Hong Kong.
- Earmark HK$30 billion to strengthen elderly services and rehabilitation services for persons with disabilities.
- Provide HK$700 million to strengthen vocational and professional education and training, facilitate the training and professional development of principals and teachers, and enhance support for local post-secondary students.
- Allocate HK$300 million in 2017/18 to expand the Multi-faceted Excellence Scholarship and the International Youth Exchange Programme to broaden young people’s horizons.
- Earmark HK$300 million to allow property owners to participate in the "Smart Tender" Building Rehabilitation Facilitating Services Scheme at a concessionary rate.
- The 2017/18 Land Sale Programme will include 28 residential sites (of which 20 are new ones), three commercial/business sites and one hotel site.