- Profits tax rates for companies (16.5%) and unincorporated businesses (15%) remain unchanged.
- Expand the scope of tax deduction for capital expenditure incurred for the purchase of intellectual property rights to layout-design of integrated circuits, plant varieties and rights in performance.
- Examine the use of tax concession to boost aircraft leasing business and explore business opportunities in aerospace financing.
- No change in the standard tax rate, progressive tax rates and the income bands for progressive tax rates.
- Increase the basic and married person’s allowances to HK$132,000 and HK$264,000 respectively.
- Increase the single parent allowance to HK$132,000.
- Increase the dependent parent/grandparent allowances to:
- HK$46,000 (for each parent/grandparent aged 60 or above and not residing with the taxpayer) and HK$92,000 (for each parent/grandparent aged 60 or above and residing with the taxpayer);
- HK$23,000 (for each parent/grandparent aged 55 to 59 and not residing with the taxpayer) and HK$46,000 (for each parent/grandparent aged 55 to 59 and residing with the taxpayer).
- Increase the deduction ceiling for elderly residential care expenses to HK$92,000.
- Waive business registration fees for 2016/17.
- 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 2015/16 (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 2015/16, 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 2016/17, subject to a ceiling of HK$1,000 per quarter for each rateable property.
- Provide one additional month of Comprehensive Social Security Assistance (CSSA) payment, Old Age Allowance, Old Age Living Allowance and Disability Allowance.
- Enhance the special concessionary measures under the SME Financing Guarantee Scheme by extending the application period to 28 February 2017, reducing the annual guarantee fee rate and removing the minimum guarantee fee.
- Earmark HK$240 million to promote Hong Kong and attract tourists.
- Launch the Pilot Technology Voucher Programme to subsidise the use of technological services and solutions by SMEs.
- Inject HK$5 billion into the Innovation and Technology Fund and introduce various measures to encourage private enterprises to invest in R&D and applied technology.
- Set up a HK$2 billion Innovation and Technology Venture Fund, expand the Science Park in stages and inject HK$2 billion to launch a Midstream Programme for universities.
- Launch another issue of iBond (i.e. inflation-linked retail bonds) of up to HK$10 billion and a pilot scheme to issue Silver Bond, targeting at Hong Kong residents aged 65 or above.
- The 2016/17 Land Sale Programme will include 29 residential sites (of which 14 are new ones), eight commercial/business sites and three hotel sites.