Hong Kong 2012-13 Tax FactsSalaries Tax Charged on Hong Kong sourced remuneration inclusive of certain benefits in kind. Housing benefit is one source of relief, and is subject to preferential tax treatment, generally at an equivalent rate of 10% of an employee’s non-housing remuneration. Other forms of relief include: - “60 days exemption” rule for both Hong Kong and foreign employment
- “Days-in-days-out” calculation rule for foreign employment
Tax rates and allowancesThe tax charge is the lower of: - The standard rate of 15% applying to net chargeable income before personal allowances
- The progressive rates applying to net chargeable income
| Progressive rates | Tax | HK$ | | First HK$40,000 | @ 2% | 800 | | Next HK$40,000 | @ 7% | 2,800 | | Next HK$40,000 | @ 12% | 4,800 | | Cumulative tax on first HK$120,000 | – | 8,400 | | Balance | @ 17% | |
| Personal allowances | HK$ | | Basic allowance (single) | 120,000 | | Married person's allowance* | 240,000 | Child allowance (each)
1st to 9th child |
126,000
63,000
| Dependent parent or grandparent allowance (each)
Aged 60 and above - Residing with taxpayer
- Not residing with taxpayer
Aged 55 to 59 - Residing with taxpayer
- Not residing with taxpayer
|
76,000
38,000
38,000
19,000
| | Dependent brother or sister allowance (each) | 33,000 | | Single parent allowance | 120,000 | | Disabled dependent allowance (each) | 66,000 | * Granted to a married person whose spouse does not have any assessable income; or to a person who, together with his or her spouse, have elected joint assessment. |
| Self-education expenses and concessionary deductions - maximum limits | HK$ | | Self-education expenses | 60,000 | | Elderly residential care expenses | 76,000 | | Home loan interest* | 100,000 | | Mandatory contributions to recognized retirement schemes | 15,000 | | Approved charitable donations | up to 35% of
assessable income | * Now proposed to extend from 10 to 15 years of relief in total in the 2012-13 budget |
* The fee portion of HK$2,000 is proposed to be waived for 2012-13 in the 2012-13 budget
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