Tax rates summary

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Tax rates 2018/19
First $50,000 at 2%
Next $50,000 at 6%
Next $50,000 at 10%
Next $50,000 at 14%
On the remainder at 17%
Standard rate 15%
Tax rates 2017/18
First $45,000 at 2%
Next $45,000 at 7%
Next $45,000 at 12%
On the remainder at 17%
Standard rate 15%

Personal allowances

  2018/19 2017/18
Basic allowance $132,000 $132,000
Married person's allowance $264,000 $264,000

Child allowance

- 1st to 9th child (each)

  • year of birth
  • other years

 

 

$240,000

$120,000

 

 

$200,000

$100,000

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

 

 

$50,000

$100,000


 

$25,000

$50,000

 

 

$46,000

$92,000


 

$23,000

$46,000

Dependent brother / sister allowance
  (for whom no child allowance is claimed)
$37,500 $37,500
Single parent allowance $132,000 $132,000
Disabled dependant allowance
  (in addition to any allowances already granted for the disabled dependant)
$75,000 $75,000
Personal disability allowance
  (in addition to any allowances already granted for the disabled person)
$75,000 -

Deductions

Maximum deduction for amount paid for 2018/19 2017/18
Self-education expenses $100,000 $100,000
Home loan interest $100,000 $100,000
Elderly residential care expenses $100,000 $92,000
Contributions to recognised retirement schemes1 $18,000 $18,000
Approved charitable donations 35% of income after allowable expenses and depreciation allowances 35% of income after allowable expenses and depreciation allowances

Note: 

1. The 2018/19 Budget proposed a tax deduction for voluntary contributions made to the Mandatory Provident Fund. Details of the deduction have yet to be announced.

Tax rates 2018/191 2017/18

Companies

  • First $2,000,000
  • On the remainder

 

8.25%

16.5% 

 


16.5%

Unincorporated businesses

  • First $2,000,000
  • On the remainder

 

7.5%

15%

 


15% 

Note: 

1. A bill proposing the above two-tiered profits tax rates system was gazetted on 29 December 2017. The bill is currently under the consideration of the Legislative Council and has not yet enacted into law. Once enacted, the two-tiered tax rates will be effective from year of assessment 2018/19.

Tax rates 2018/19 2017/18
Tax rate 15% 15%


(1)  Conveyance on sale of immovable property – Ad valorem stamp duty

Property consideration1 Flat rate2 Scale 1 rates3 Scale 2 rates4
Up to HK$2,000,000

 

 

 

 

15%

1.50% HK$100 
$2,000,001 - $3,000,000 3.00% 1.50%
$3,000,001 - $4,000,000 4.50% 2.25%
$4,000,001 - $6,000,000 6.00% 3.00%
$6,000,001 - $20,000,000 7.50% 3.75%
$20,000,001 and above 8.50% 4.25%

Notes: 

1. Marginal relief is available upon entry into each higher value band.

2. The 15% flat rate applies to transfer of resident property executed on or after 5 November 2016 except for cases where the Scale 2 rates are applicable.

3. The Scale 1 rates apply to transfer of non-residential property.

4. 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.

(2) Special Stamp Duty on disposal of residential properties

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%

(3) Buyer’s Stamp Duty (BSD) on acquisition of residential properties

Duty rate 15%

(4) Lease of immovable property in Hong Kong

Lease period 2018/19 2017/18
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%

(5) Transfer of Hong Kong stock 

The rate of stamp duty on stock transactions is 0.2% of the consideration ($2 per $1,000) per transaction. 

(6) Hong Kong bearer instrument

Duty of 3% of the market value is charged for any Hong Kong bearer instrument issued in respect of any stock. 

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