On 16 October 2024, the Chief Executive unveiled the 2024 Policy Address themed “Reform for Enhancing Development and Building Our Future Together”. Below are the notable tax measures proposed.
1. Enhancements to the New Capital Investment Entrant Scheme
Current Scheme
Permissible investments are limited to non-residential real estate, with a cap of HKD10 million.
Residential real estate is excluded from qualifying investments.
Proposed Changes
High-end residential properties will now qualify as permissible investments if the transaction price is at least HKD50 million.
The cap on permissible residential real estate investments remains HKD10 million.
2. Strengthening Hong Kong’s Role as an International Asset and Wealth Management Hub
Hong Kong currently hosts 2,700 single-family offices.
The Government plans to consult the industry on expanding qualifying transactions eligible for tax concessions for funds and single-family offices.
3. Boosting High Value-Added Maritime Services
To support and enhance the maritime sector:
Existing tax concessions for maritime services will be further promoted.
Preferential tax regimes will be refined, including introducing new tax deduction arrangements for ship lessors, aligning with international tax rules.
4. Creating a Commodity Trading Ecosystem
Tax incentives and support measures are being explored to attract Mainland Chinese and international enterprises to establish operations in Hong Kong.
The goal is to foster a commodity trading ecosystem, which could bolster:
Local maritime services.
Demand for financial and professional services in Hong Kong.
5. Tax Deduction for Assisted Reproductive Services
From the 2024-25 assessment year, individuals will be able to claim a tax deduction for expenses related to assisted reproductive services under salaries tax and personal assessment.
The deduction ceiling is set at HKD100,000 per year.
The proposed measures reflect a balanced approach to enhancing Hong Kong’s competitiveness in investment, finance, and professional services while addressing social priorities such as fertility support. Businesses and individuals alike should take note of these updates as they prepare for the upcoming fiscal year.
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