skip to Main Content

Hong Kong Financial Secretary has set the 2022-23 budget earlier this year. Below is a summary of the budget report.

Profits (Corporate) Tax

  1. Corporate Tax rate for the first HK$2 million of profits is reduced to 8.25%.
  2. Corporate Tax rate on remaining profits is 16.5%.
  3. Offshore profit is not taxable by Hong Kong authority.
  4. Hong Kong has no capital gain tax and no withholding tax on payment.
  5. There is no tax on dividend.
  6. Business Registration licence fee is waived for financial year 2022/23. Policy will remain until March 2023, and the license fee is currently HK$250.
  7. Keep funding ceiling for Technology Voucher Programme as HK$600,000.

Salaries (Personal) Tax

The progressive tax rate for salary income remains as below for the financial year 2022/23.

Personal Income

Progressive Tax Rate %

First HK$50,000

2%

Next HK$50,000

6%

Next HK$50,000

10%

Next HK$50,000

14%

Remaining income

17%

The Financial Secretary also suggested an one-time 100% tax deduction for salaries tax for the year 2021/22, subject to a ceiling of HK$10,000 per case.

Employment Support Scheme – Safeguard Jobs (Program re-opens in 2022)

The Hong Kong Government has introduced Employment Support Scheme under the Anti-epidemic Fund. The fund is to assist active Hong Kong businesses to retain talents and employees. There will be subsidies for the period between May 2022 to July 2022.  Eligible employers can receive a full subsidy of HK$8000 for each employee. In other words, the employer can receive HK$24,000 subsidy in hiring each employee.  To start the application, please visit https://www.ess.gov.hk/en/index.html.

Should you have any questions, feel free to contact our licenced CPA and Chartered secretary at info@getstarted.hk.