|Tax rates||2017/2018||Tax rates||2016/2017|
|First $45,000 at||2%||First $40,000 at||2%|
|First $45,000 at||7%||First $40,000 at||7%|
|First $45,000 at||12%||First $40,000 at||12%|
|On the remainder at||17%||On the remainder at||17%|
|Standard rate||15%||Standard rate||15%|
|Married person's allowance||HK$264,000||HK$264,000|
|1st to 9th child (each)|
|> Year of Birth||HK$200,000||HK$200,000|
|> Other years||HK$100,000||HK$100,000|
|Dependent parent / grandparent allowance|
|Aged 60 or above|
|> not residing with taxpayer||HK$46,000||HK$46,000|
|> residing with taxpayer throughout the year||HK$92,000||HK$92,000|
|Aged 55 to 59|
|> not residing with taxpayer||HK$23,000||HK$23,000|
|> residing with taxpayer throughout the year||HK$46,000||HK$46,000|
|Dependent brother / sister allowance (for whom no child allowance is claimed)||HK$37,500||HK$33,000|
|Single parent allowance||HK$132,000||HK$132,000|
|Disabled dependant allowance (in addition to any allowances already granted for the disabled person)||HK$75,000||HK$66,000|
|Maximum deduction for amount paid for||2017/2018||2016/2017|
|Home loan interest||HK$100,000||HK$100,000|
|Elderly residential care expenses||HK$92,000||HK$92,000|
|Contributions to recognised retirement schemes||HK$18,000||HK$18,000|
|Charitable donations||35% of assessable income||35% of assessable income|
|Property consideration1||Scale 1 rates2,3||Scale 2 rates2|
|Up to HK$2,000,000||1.50%||HK$100|
|HK$2,000,001 - $3,000,000||3.00%||1.50%|
|HK$3,000,001 - $4,000,000||4.50%||2.25%|
|HK$4,000,001 - $6,000,000||6.00%||3.00%|
|HK$6,000,001 - $20,000,000||7.50%||3.75%|
|HK$20,000,001 and above||8.50%||4.25%|
1. Marginal relief is available upon entry into each higher value band.
2. The Scale 2 rates apply to residential property acquired by a Hong Kong permanent resident who does not own any other residential property in Hong Kong at the time of acquisition and in some other specified circumstances. The Scale 1 rates apply to all other cases.
3. The HKSAR Government has proposed to increase the duty rates from Scale 1 rates to a flat rate of 15% on transfer of residential properties. The flat rate, once enacted, will apply retrospectively from 5 November 2016.
|Holding period||Duty rate|
|Six months or less||20%|
|More than six months but for 12 months or less||15%|
|More than 12 months but for 36 months or less||10%|
|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%|
The rate of stamp duty on stock transactions is 0.2% of the consideration ($2 per $1,000) per transaction.
Duty of 3% of the market value is charged for any Hong Kong bearer instrument issued in respect of any stock.
The information in this booklet is based on taxation laws and practices as of 24 Feb 2016 and incorporates legislative proposals and measures contained in the 2016/17 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.