2012/13 Hong Kong Budget
| Hong Kong Tax Rates 2012/2013 | View this page in: 繁體中文版
Profits Tax
| Rates of tax |
2012/2013 |
2011/2012 |
| Companies |
16.5% |
16.5% |
| Unincorporated businesses |
15% |
15% |
Salaries Tax
| Rates of tax |
2012/2013 |
|
2011/2012 |
| First HK$40,000 |
2% |
First HK$40,000 |
2% |
| Next HK$40,000 |
7% |
Next HK$40,000 |
7% |
| Next HK$40,000 |
12% |
Next HK$40,000 |
12% |
| On the remainder |
17% |
On the remainder |
17% |
| Standard rate |
15% |
Standard rate |
15% |
| Personal allowances |
2012/2013 |
2011/2012 |
| Basic allowance |
HK$120,000 |
HK$108,000 |
| Married person's allowance |
HK$240,000 |
HK$216,000 |
Child allowance
| 1st to 9th child (each) |
 Year of birth |
| Other years |
|
|
|
Dependent parent / grandparent allowance
| Aged 60 or above |
| not residing with taxpayer |
| residing with taxpayer throughout the year |
| |
| Aged 55 to 59 |
| not residing with taxpayer |
| residing with taxpayer throughout the year | |
|
| HK$38,000 |
| HK$76,000 |
| |
| |
| HK$19,000 |
| HK$38,000 | |
|
| HK$36,000 |
| HK$72,000 |
| |
| |
| HK$18,000 |
| HK$36,000 | |
| Dependent brother / sister allowance (for whom no child allowance claimed) |
HK$33,000 |
HK$30,000 |
| Single parent allowance |
HK$120,000 |
HK$108,000 |
| Disabled dependant allowance (in addition to any allowances already granted for the disabled person) |
HK$66,000 |
HK$60,000 |
| Deductions (maximum deduction for amount paid for):
| 2012/2013
| 2011/2012 |
| Self-education expenses |
HK$60,000 |
HK$60,000 |
| Home loan interest |
HK$100,000 |
HK$100,000 |
| Elderly residential care expenses |
HK$76,000 |
HK$72,000 |
| Contributions to recognised retirement schemes |
HK$15,000 |
HK$12,000 |
| Charitable donations |
35% of assessable income |
35% of assessable income |
Property TaxBasis of taxation Property tax is charged on the owner of any land or buildings in Hong Kong at the standard rate (15%) on the net assessable value of such land or buildings.
Stamp DutyImmovable property: conveyance on sale
| Rates of duty on property consideration |
2012/2013 |
2011/2012 |
| Up to HK$2,000,000 |
HK$100 |
HK$100 |
| HK$2,000,001 - $3,000,000 |
1.50% |
1.50% |
| HK$3,000,001 - $4,000,000 |
2.25% |
2.25% |
| HK$4,000,001 - $6,000,000 |
3.00% |
3.00% |
| HK$6,000,001 - $20,000,000 |
3.75% |
3.75% |
| HK$20,000,001 and above |
4.25% |
4.25% | Marginal relief is available upon entry into each higher rate band. Where a conveyance on sale of a residential property is executed in conformity with a chargeable agreement for sale of that property and the agreement for sale is duly stamped, the conveyance on sale is chargeable with stamp duty of HK$100. Conveyances on sale should be submitted for stamping within 30 days after execution. Agreement for sale of residential propertyThe duty rates for agreement for sale of residential property are the same as those for conveyance on sale of immovable property as specified above. Chargeable agreements should be submitted for stamping within 30 days after execution. Before 30 June 2011, for properties valued at HK$20 million or below, payment of stamp duty may be deferred until the assignment is executed in conformity with the agreement or the date of re-sale of the property. The maximum period of deferral is three years after the execution of the agreement. However, such deferral has been cancelled effective from 30 June 2011. Special Stamp Duty on disposal of residential property
Effective from 20 November 2010, there is a Special Stamp Duty ("SSD") on resale of residential property within 24 months from the date of acquisition. The SSD is imposed on top of the ad valorem stamp duty payable on conveyance on sale or agreement for sale of residential property with a few exemptions. The SSD payable will be calculated based on the stated consideration or the market value (whichever is higher) of the resold property at the regressive rates indicated below. The legislation introducing the SSD was enacted on 30 June 2011 with retrospective effect from 20 November 2010.
| Holding period |
Duty rate |
| For residential properties held for six months or less |
15% |
| For residential properties held for more than six months but for 12 months or less |
10% |
| For residential properties held for more than 12 months but for 24 months or less |
5% | Lease of immovable property in Hong Kong For leases, stamp duty is calculated at a specified rate of the annual rental that varies with the term of the lease as indicated in the following table:
| Lease period |
2012/2013 |
2011/2012 |
| Where the lease term is not defined or is uncertain |
0.25% |
0.25% |
| Not more than one year |
0.25% |
0.25% |
| More than one year but does not exceed three years |
0.50% |
0.50% |
| More than three years |
1.00% |
1.00% | Hong Kong stock The rate of stamp duty on stock transactions is 0.2% (HK$2 per HK$1,000) per transaction. Hong Kong bearer instrumentDuty of 3% of the market value is charged for any Hong Kong bearer instrument issued in respect of any stock. The information on this web page is based on taxation laws and practices as of 1 February 2012 and incorporates legislative proposals and measures contained in the 2012/2013 Hong Kong Budget announced on the same date.
Legislative proposals do not become law until their enactment and may be modified by the Legislative Council before being enacted.
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