The Financial Secretary delivered the 2016/17 Hong Kong budget on February 24, 2016. Similar to last year's budget, the 2016/17 budget did not introduce any change to the standard tax rate, progressive tax rates and income bands for progressive tax rates for Hong Kong salaries tax. However, increases in the basic and married person's allowances, single parent allowance and dependent parent/grandparent allowances as well as the deduction ceiling for elderly residential care expenses are proposed in the budget as recurrent measures to ease the burden of salaries taxpayers.
In addition, a salaries tax rebate similar to that for 2014/15 is proposed for 2015/16 as a one-off relief measure. Similar to last year, companies which have settled the 2015/16 salaries tax liabilities for their former assignees/expatriates who have already departed from Hong Kong should ensure the refunds in relation to the tax rebate are made available to the companies instead of the individual employees.
Read more on our 2016/17 Hong Kong Budget commentary, highlights, and tax facts and figures.