Hong Kong 2013-14 Budget Insights
In moving his sixth budget, John Tsang, the Financial Secretary, stuck to a familiar script, mixing homely stories of Hong Kong’s propensity for self-help with dire warnings that Hong Kong must not succumb to the temptation of “welfarism” that has led many European countries and the US to incur uncomfortably large debts.
Highlights
- To reduce profits tax, salaries tax and tax under personal assessment for 2012-13 by 75%, capped at $10,000
- To raise child allowance and additional one-off child allowance in the year of birth from $63,000 to $70,000 each
- To raise the maximum tax deduction for self-education expenses from $60,000 to $80,000
- To waive government rates for 2013-14, capped at $1,500 per quarter for each rateable property
- To grant a subsidy of $1,800 to each residential electricity account
- To waive business registration fee for 2013–14
- To pay two months’ rent for public housing tenants
- To provide one additional month of Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living Allowance and Disability Allowance
- To extend the profits tax exemption for offshore funds to include transactions in certain private companies
- To allow offshore insurance business of captive insurance companies to enjoy 50% of the normal profits tax rate
Our Budget Insights summarize the key proposals contained in the budget and our views thereof.