On February 26, 2025, Hong Kong’s Financial Secretary, Paul Chan, unveiled the government budget for the fiscal year 2025-26. The budget includes several tax measures aimed at strengthening fiscal stability while maintaining Hong Kong’s status as a low-tax, business-friendly environment:<\/p>\n
General tax incentives<\/strong><\/td>\n<\/tr>\n| Profits Tax<\/strong><\/p>\n | <\/td>\n A 100% reduction in profits tax for the 2024\/25 tax year, capped at HK$1,500 per case.<\/td>\n<\/tr>\n | Salaries Tax<\/strong><\/td>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A 100% reduction in salaries tax for the 2024\/25 tax year, capped at HK$1,500 per individual.<\/p>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For married couples filing jointly, the cap remains at HK$1,500 combined.<\/td>\n<\/tr>\n Property Transaction Incentives<\/strong><\/td>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The exemption threshold for stamp duty of HK$100 has been raised for both residential and non-residential property transactions.<\/p>\n | \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Properties valued at HK$4 million or below are eligible for this exemption, effective immediately.<\/td>\n<\/tr>\n Tax Relief for Combined Liabilities<\/strong><\/td>\n | Taxpayers liable for both salaries tax and profits tax will receive the proposed tax relief on both, calculated based on their specific income and profit assessments.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | <\/p>\n Beyond general tax relief, the Budget 2025-26 includes targeted incentives to stimulate growth and innovation in strategic sectors, aiming to attract both domestic and international investment.<\/p>\n
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