2016/17 Hong Kong Budget

Tax facts and figures 

2015/2016 Hong Kong Tax Facts and Figures (pdf file, 1.16MB)
24 Feb 2016

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.

Download 2016/17 Tax Facts and Figures
English (pdf file, 494KB)
繁體中文版 (pdf 文件,735KB)


Tax rates summary

Profits tax

Tax rates  2016/2017  2015/2016 
Companies 16.5%  16.5% 
Unincorporated businesses 15%  15% 

Property tax

Tax rates  2016/2017  2015/2016 
Tax rate 15%  15% 

Salaries tax

Tax rates  2016/2017  2015/2016 
First HK$40,000 2%  2% 
Next HK$40,000 7%  7% 
Next HK$40,000 12%  12% 
On the remainder 17%  17% 
Standard rate 15%  15% 

Personal allowances 2016/2017  2015/2016
Basic allowance HK$132,000  HK$120,000 
Married person's allowance HK$264,000  HK$240,000 
Child allowance
1st to 9th child (each)
 Year of birth
 Other years
   
  
HK$200,000
HK$100,000
   
  
HK$200,000
HK$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

   
  
HK$46,000
HK$92,000
 


HK$23,000
HK$46,000

   
  
HK$40,000
HK$80,000
 


HK$20,000
HK$40,000
Dependent brother / sister allowance (for whom no child allowance is claimed) HK$33,000  HK$33,000 
Single parent allowance HK$132,000  HK$120,000 
Disabled dependant allowance (in addition to any allowances already granted for the disabled person) HK$66,000  HK$66,000 

Maximum deduction for amount paid for  2016/2017  2015/2016 
Self-education expenses HK$80,000  HK$80,000 
Home loan interest HK$100,000  HK$100,000 
Elderly residential care expenses HK$92,000  HK$80,000 
Contributions to recognised retirement schemes HK$18,000  HK$18,000 
Charitable donations 35% of assessable income  35% of assessable income 

Stamp duty

(1) Transfer of immovable property – Ad valorem stamp duty
Property consideration  Duty rates applicable from
23 February 20131
 
  Scale 1 rates2  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% 

Notes:
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.


(2) Special Stamp Duty on disposal of residential property
Holding period Duty rates applicable
from 27 October 2012
 
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 property
  Duty rate applicable
from 27 October 2012
 
Duty rate 15% 


(4) Lease of immovable property in Hong Kong
Lease period 2016/2017  2015/2016 
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.


Contacts
Reynold Hung
China South and Hong Kong Tax Leader
Hong Kong
Tel: +[852] 2289 3604 Email
Agnes Wong
Partner
Hong Kong
Tel: +[852] 2289 3816 Email
Jeremy Choi
Partner
Hong Kong
Tel: +[852] 2289 3608 Email
KK So
Partner
Hong Kong
Tel: +[852] 2289 3789 Email
Marcellus Wong
Senior Advisor
Hong Kong
Tel: +[852] 2289 1822 Email