Highlights of Hong Kong 2023/24 Budget

Source : The 2023-24 Budget (https://www.budget.gov.hk/2023/eng/pf.html)

Economic Outlooks for 2023
  • Forecast GDP growth in real terms at 3.5% to 5.5%
  • Forecast headline inflation is 2.9% and underlying inflation is 2.5%
Major Proposed Measures
Electronic Consumption Vouchers
Issue electronic consumption vouchers in 2 instalments with a total value of HKD 5,000 to each eligible Hong Kong permanent resident and new arrival aged 18 or above. The Government will first disburse consumption voucher valued at HKD 3,000 in April 2023 using the registration data of last year’s scheme. The remaining HKD 2,000 consumption vouchers will be disbursed along with the new eligible persons in the middle of 2023.
The eligible persons who have come to live in Hong Kong through different admission scheme or to study in Hong Kong will receive consumption vouchers valued at HKD 2,500. Details will be announced by the Government later.
Tax Relief for Business
Reduce profits tax for the Year of Assessment ("YOA") 2022/23 by 100%, subject to a ceiling of HKD 6,000.
Telecommunications Sector: The Government purpose to provide tax deduction for the spectrum utilization fees to be paid by the future successful bidders of radio spectrum so as to encourage telecommunications Industry.
Intellectual Property Trading: The Government will introduce a "Patent Box" tax incentive to provide tax concession for profits sourced in Hong Kong from qualifying patents generated from Research and Development ("R&D") activities in order to encourage enterprises to conducts R&D in Hong Kong. The Government aims to submit the legislative amendments to the Legislative Council in the first half of 2024.
Aviation: Introduce measures to enhance the aircraft leasing preferential tax regime so as to attract aircraft leasing companies to establish presence in Hong Kong.
The budget proposed to increase deduction for the Mandatory Provident Fund ("MPF") voluntary contributions made by employers for the employees aged 65 or above from 100% to 200%.
Commencing from July 2023, granting 50% rental or fee concession to eligible tenants of government premises and eligible short term tenancies and waivers under the Lands Department for six months until end of the year 2023.
Extend the application period of all guarantee product under the SME Financing Guarantee Scheme to the end of March 2024.
The Government will launch new scheme to offer fully guaranteed loans for eligible passenger transport operators and licensed travel agent so as to support cross boundary passenger transport and the tourism industry.


Waive rates for non domestic properties for the FIRST TWO quarters of the YOA 2023/24, subject to a ceiling of HKD 1,000 per quarter for each rateable non domestic property.
Tax Relief for Individuals
Reduce salaries tax and tax under personal assessment for the YOA 2022/23 by 100%, subject to a ceiling of HKD 6,000.
Proposed to increase the basic child allowance and the additional child allowance for each child born during the assessment year from HKD 120,000 to HKD 130,000 starting from the year of assessment 2023/24.
Provide an allowance to eligible social security recipients, equal to one half of a month of the standard rate Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to recipients of the Working Family Allowance.
Extend the temporary special measure under the Public Transport Fare Subsidy Scheme for a period of 6 months till October 2023 to provide commuters with a subsidy amounting to 1/3 of their actual monthly public transport expense in excess of HKD 200, capped at HKD 500 per month.
Pay the examination fees for school candidates sitting for the 2024 Hong Kong Diploma of Secondary Education Examination.
Grant each eligible residential electricity account a subsidy of HKD 1,000. The current arrangement of distributing electricity charges relief of HKD 50 a month to each eligible residential electricity account will be extended to the end of 2025.

Stamp Duty

  • The Government proposed to adjust the value bands of ad valorem stamp duty payable for sale and purchase or transfer of residential and non residential properties (Rates at Scale 2) with immediate effect.

    Rates at Scale 2 applicable to Hong Kong permanent residents who are the first time buyers of the residential properties in Hong Kong.

  • The Financial Secretary further reiterated that current demand side management measure for residential properties (commonly known as “harsh measures”) remain unchanged.


Waive rates for residential properties for FIRST TWO quarters of the YOA 2023/24, subject to a ceiling of HKD 1,000 per quarter for each rateable property.
Other Tax Issues
Implementation of the Global Minimax Tax Regime: The Government will apply the global minimum effective tax rate on large multinational enterprise group and domestic minimum top up tax starting from 2025.
Disposal of Equity Interest: The Government will launch a proposal in min March 2023 to provide a clearer guidelines on whether onshore gains on disposal of equity interests are subject to tax.
Tabacco Duty: With immediate effect, the Government increase the duty of cigarettes by HKD 0.6 per and duty on other tobacco products by the same proportion.
Annual Special Football Duty: The Government purposed to impose an annual special football betting duty of HKD 2.4 billion on Hong Kong Jockey Club for 5 years starting from 2023/24 as so to increase government revenue in the short run.

Source : https://www.budget.gov.hk/2023/eng/gallery/gallery.html?date=20230223

Gearing Up For Speedy Recovery On The Path To Normalcy
Post-epidemic Recovery
Strive to Attract Tourists and Enliven Hong Kong’s Image
The Government will earmark HKD 100 million to attract more mega events with significant visitor appeal and tourism promotional effect to staged in Hong Kong and the Hong Kong Tourism Board ("HKTB") will spend over HKD 250 million to sustain its efforts in organizing or helping promote major tourism events in order to enhance Hong Kong’s international image.
The Government will allocate additional funding of about HKD 200 million to the HKTB for stepping up its efforts in securing the staging of more international meetings to attract high value added visitors and consolidate Hong Kong's position as the premier meetings and conferencing destination in the region.
The Hong Kong Monetary Authority is discussing with the Bank of International Settlements the holding of the Central Bank Governors Meeting in Hong Kong in the latter half of 2023.
The Global Financial Leaders’ Investment Summit will be held again in 2023 to showcase Hong Kong‘s unique edges and investment environment.
Provide a grant of HKD 50 million on promoting Hong Kong via the Task Force on Promoting and Branding Hong Kong.
The Government will launch the "Happy Hong Kong" Campaign for the general public thereby bringing more joy to the community as well as simulate local consumption and boost economy.
In support of the Happy Hong Kong Campaign, West Kowloon Cultural District Authority, Hong Kong Disneyland, Ocean Park Hong Kong, Hong Kong Cyberport Management Company Limited (“Cyberport”) and Hong Kong Science and Technology Parks Corporation will each hold themed fairs, carnivals or other activities in 2023.
Opening Up New Horizons Together
Digital Economy
Digital Infrastructure

Artificial Intelligence Supercomputing Centre

The Government will conduct a feasibility study on the development of an artificial intelligence (“AI”) Supercomputing centre and the study will be completed in 2023-24.

"iAM Smart"

The Government will earmark a sum of about HKD 200 million to enhance the operation of the iAM Smart platform in order to offer the general public with more convenient one stop digital services and improve user experience.
Digital Transformation
The Government will set aside HKD 500 million for Cyberport to launch a Digital Transformation Support Pilot Programme, under which subsidies will be provided on a one to one matching basis to assist SMEs in applying ready to use basic digital solutions, thus facilitating their digitalisation.
The Government will allocate HKD 50 million to expedite the Web3 ecosystem development by organizing major international seminars, to enable the industry and enterprises to better grasp frontier development and to promote cross sectoral business co-operation, as well as arranging a wide array of workshops for young people.
Virtual assets ("VA") are an integral part of a vibrant Web3 ecosystem. The Government will establish and lead a task force on VA development with members from relevant policy bureaux, financial regulators and market participants, to provide recommendations on the sustainable and responsible development of the sector.
International GreenTech and GreenFi Centre
To accelerate the development of Hong Kong into an international centre for green technology and finance, the Government will proceed in below five direction:-
  1. Building a green technology ecosystem;
  2. Green finance application and innovation;
  3. Green certification and alignment with international standards;
  4. Training for talents; and
  5. Enhancing the exchange and co operation with the Guangdong Hong Kong Macao Greater Bay Area (“GBA”) and international markets.
The Government will establish a Green Technology and Finance Development Committee to assist in the formulation of an action agenda for promoting the development of Hong Kong into an international green technology and finance centre.
Attract Enterprise and Talent
The Government will introduce a mechanism to provide facilities for companies domiciled overseas for redomiciliation to Hong Kong.
The Government will introduce a new Capital Investment Entrant Scheme to enrich the talent pool and more new capital to Hong Kong.
Acitively Align with National Development Strategies
International Innovation and Technology Centre
Life Technology and Artificial Intelligence
The Government will set aside HKD 6 million out of HKD 10 million of the 2022-23 Budget to provide subsidies for universities and research institutes to set up thematic research centre so as to enhance support for the transformation of research and development ("R&D") outcomes as well as R&D activities related to life and health technology.
The Government will earmark HKD 3 billion to further enhance basic research in frontier technology fields such as AI and quantum technology.
To establish a Microelectronics Research and Development Institute to promote microelectronics development in Hong Kong.
The Government will earmark HKD 265 million for Cyberport to launch a programme for smart living start ups.
International Finance Centre
The Government will earmark HKD 100 million to InvestHK to attract more family offices to Hong Kong.
The Government plans to issue no less than HKD 50 billion of Silver Bond and HKD 15 billion of retail green bonds in the next financial year.
The Government plans to allocate certain proportion of the future issuances of Government green bonds and infrastructure bonds for priority investment by MPF funds.
International Maritime Centre
The Government will earmark HKD 20 million to expedite studies on strategies for promoting the high end maritime service industry and enhance exchanges among industries in the international arena and the GBA.
International Trade Centre
The Government will provide additional funding of HKD 550 million to Hong Kong Trade Development Council to assist enterprises and investors in opening up target emerging market.
The Budget proposed to allocate HKD 500 million into the Dedicated Fund on Branding, Upgrading and Domestic Sales and expedite the application process.
The Budget proposed to allocate HKD 100 million to the Hong Kong Productivity Council.
Building Capacity
Talent Resources

Financial Services

The Government will launch a Fintech internship scheme for post secondary student in acquiring practical work experience in Fintech enterprises in Hong Kong or the wider GBA in order to further nurture Fintech talent.


The Government will inject HKD 200 million into the Maritime and Aviation Training Fund to support manpower training.

Innovation and Technology

The Government will allocate an additional funding of HKD 300 million to continue providing subsidies of up to HKD 1 million for each publicly funded secondary school for organizing IT-related extra-curricular activities.

Construction Industry

The Government will incur about HKD 100 million to provide on-the-job training allowance to trainees who have enrolled in part related degree programmes.
Land and Housing Supply
The Government will secure land for production of no less than 72,000 private housing units in the coming 5 years.
The Government has identified sufficient land for the provision of about 360,000 public housing units.
8 sites has identified sufficient land for the construction of Light Public Housing to fill the short-term gap of public housing supply in a timely manner.
The Government estimated that the completion of private residential units will average over 19,000 unit annually in 5 years from 2023 onwards.
Governing for the People
Building a Liveable City
Green City
The Government will inject HKD 200 million under the New Energy Transport Fund for commencing trials of hydrogen fuel cell electric double deck buses and heavy vehicles.
The Government will set aside HKD 350 million to provide subsidies to 4 in harbour ferry operators to construct and test electric ferries and the related charging facilities.
The Government will put in place a loan scheme with 100% guarantee for the taxi trade as an incentive for taxi owner to replace to battery electric taxis.
The Government will allocate an additional HKD 62 million for food waste collection to cover more public and private premises.
The Government will inject an additional funding of HKD 500 to the Chinese Medicine Development Fund.
Youth Development
The Government is examining some underutilize floors of Kwun Chun Municipal Service Building into an urban sport centre for the youths to enjoy.
The Government will launch a project for secondary school student regrading vocational and professional training.
Caring and Inclusion
Women Development
The Government will set aside HKD 100 million to strengthen support for women’s development
Regularize certain schemes to support elderlies and carers.
The Government will waive the payment of the water fee deposit and the charge for providing a meter for each separate water meter installed in eligible subdivided units.
Major Tax Rates For The Years 2022/23 and 2023/24
Salaries Tax
i. Personal tax allowances and deductions
Basic allowances
Single person’s allowance132,000132,000
Married person’s allowance264,000264,000
Additional allowances (Child - 1st to 9th child (each) note 1)
Year of birth240,000260,000
Other years120,000130,000
Dependent parent / grandparent allowance
Aged 55 to 59
Not residing with taxpayer25,00025,000
Residing with taxpayer for the whole year50,00050,000
Aged 60 or above
Not residing with taxpayer50,00050,000
Residing with taxpayer for the whole year100,000100,000
Dependent brother / sister allowance (for whom no child allowance is claimed)
Single parent allowance132,000132,000
Disabled dependant allowance note 275,00075,000
Personal disability allowance note 275,00075,000
Additional deductions
Self education expenses note 3100,000100,000
Home loan interest note 4100,000100,000
Elderly residential care expenses100,000100,000
Contributions to retirement schemes18,00018,000
Voluntary contribution to MPF scheme and qualifying annuity premiums60,00060,000
Qualifying premiums paid under the Voluntary Health Insurance Scheme8,000 / insured person8,000 / insured person
Domestic rent deduction100,000100,000
Approved charitable donations note 535%35%
  1. The 2023/24 Budget proposed to increase the basic child allowance and additional child allowance from the YOA 2023/24 subject to the enactment of the relevant legislation.
  2. In addition to any allowances already granted for the disable dependant/person)
  3. The maximum amount that can be claimed as deductible expense for training courses attended at approved institutions.
  4. The entitlement period for tax deduction extends to 20 years since YOA 2017/18.
  5. The maximum deduction allowable is restricted to 35% of the taxpayer’s assessable income after deduction of allowable expenses and depreciation allowance.
ii. Standard salaries tax rates
2022/23 and 2023/24
Standard tax rates15%
iii. Progressive salaries tax rates
Net Chargeable Income2022/23 and 2023/24
FirstHKD 50,0002%
NextHKD 50,0006%
NextHKD 50,00010%
NextHKD 50,00014%
Profits Tax
Tax rates for 2022/23 and 2023/24 note
Assessable ProfitsUnincorporated BusinessCorporation
First HKD 2,000,0007.5%8.25%
On the remainder15%16.5%
All entities with profits chargeable to Profits Tax in Hong Kong would qualify for the two-tiered profits tax rates. However, if, at the end of the basis period of the entity for the relevant year of assessment, the entity has one or more connected entities, the two-tiered profits tax rates would only apply to the one which is nominated to be chargeable at the two tiered rates. The others would not qualify for the two-tiered profits tax rates.
Property Tax
Taxpayer2022/23 and 2023/24
Property Owner15%
Stamp Duty
Shares transactions
Particular2022/23 and 2023/24
Contract Note for sale or purchase of any Hong Kong stock0.13% of the amount of the consideration or of its value on every sold note and every bought note
Transfer operating as a voluntary disposition inter vivosHKD 5 + 0.26% of the value of the stock
Transfer of any other kindHKD 5
Leasing period2022/23 and 2023/24
Not defined or is uncertain0.25%
Specified in the lease as not exceeding 1 year0.25%
Exceeding 1 year but not exceeding 3 years0.5%
Exceeding 3 years1%
Key money, construction fee etc. Mentioned in the lease4.25% of the consideration if rent is also payable under the lease. Otherwise, same duty as for a sale of immovable property.
Immovable Property transactions
Scale 1
  • Part 1 (applies to instruments of residential property) : A flat rate of 15% of the consideration or value of the property (whichever is higher)
  • Part 2 (applies to instruments of non-residential property before 26 November 2020 and certain instrument of residential property executed on or after 23 February 2013 but before 5 November 2016). Also applies to any instrument executed on or after 26 November 2020 for the sale and purchase or transfer of non-residential property.
Sales ConsiderationRates at Scale 1 (Part 2)
Up to HKD 2,000,0001.5%
HKD 2,000,001 to HKD 2,176,470HKD 30,000 + 20% of excess over HKD 2,000,000
HKD 2,176,471 to HKD 3,000,0003%
HKD 3,000,001 to HKD 3,290,330HKD 90,000 + 20% of excess over HKD 3,000,000
HKD 3,290,331 to HKD 4,000,0004.5%
HKD 4,000,001 to HKD 4,428,580HKD 180,000 + 20% of excess over HKD 4,000,000
HKD 4,428,581 to HKD 6,000,0006%
HKD 6,000,001 to HKD 6,720,000HKD 360,000 + 20% of excess over HKD 6,000,000
HKD 6,720,001 to HKD 20,000,0007.5%
HKD 20,000,001 to HKD 21,739,130HKD 1,500,000 + 20% of excess over HKD 20,000,000
Exceeding HKD 21,739,1308.5%
Scale 2
Sales ConsiderationRates at Scale 2
Up to HKD 3,000,000HKD 100
HKD 3,000,001 to HKD 3,528,240HKD 100 + 10% of excess over HKD 3,000,000
HKD 3,528,241 to HKD 4,500,0001.5%
HKD 4,500,001 to HKD 4,935,480HKD 67,500 + 10% of excess over HKD 4,500,000
HKD 4,935,481 to HKD 6,000,0002.25%
HKD 6,000,001 to HKD 6,642,860HKD 135,000 + 10% of excess over HKD 6,000,000
HKD 6,642,860 to HKD 9,000,0003%
HKD 9,000,001 to HKD 10,080,000HKD 270,000 + 10% of excess over HKD 9,000,000
HKD 10,080,001 to HKD 20,000,0003.75%
HKD 20,000,001 to HKD 21,739,120HKD 750,000 + 10% of excess over HKD 20,000,000
Exceeding HKD 21,739,1204.25%
  1. Starting from 5 November 2016, a flat rate (AVD rate) of 15% applies to residential property transactions, this new measures will continue to adopt the exemptions provided under the existing doubled ad valorem stamp duty ("DSD") regime, which include:
    1. allowing buyers to pay AVD at the basic rates (i.e. AVD rates at Scale 2) if they are Hong Kong permanent residents (HKPRs) and do not own any other residential property in Hong Kong at the time of acquisition of the residential property; and
    2. setting a 12-month time frame for HKPR-buyers having acquired a new residential property to dispose of their original property.
  2. Unless specifically exempted or otherwise provided, a single instrument executed on or after 12 April 2017 for acquisition or transfer of more than one residential property is subject to AVD at the rate under Part 1 of Scale 1.
With effect from 20 November 2010, any residential property acquired on or after 20 November 2010, either by an individual or a company (regardless of where it is incorporated), and resold within 24 months (the property was acquired on or after 20 November 2010 and before 27 October 2012) or 36 months (the property was acquired on or after 27 October 2012), will be subject to a Special Stamp Duty ("SSD").
SSD is calculated by reference to the stated consideration or the market value of the property (whichever is higher), at the following rates for different holding periods of the property by the seller or transferor before disposal:-
Holding periodThe property was acquired on or after 20 November 2010 and before 27 October 2012The property was acquired on or after 27 October 2012
6 months or less15%20%
More than 6 months but for 12 months or less10%15%
More than 12 months but for 24 months or less5%10%
More than 24 months for 36 months or less-10%
In addition to SSD, a Buyer's Stamp Duty ("BSD") on residential properties acquired by any person (including a company incorporated) except a Hong Kong Permanent Resident is effected from 27 October 2012. BSD is to be charged at a flat rate of 15% on all residential properties, on top of the existing stamp duty and the special stamp duty, if applicable.
Estate Duty
The Government had abolished the Estate Duty with effect from 11 February 2006 pursuant to the Revenue (Abolition of Estate Duty) Ordinance 2005.


The general tax information on the above content is provided for your ease reference and is not intended to replace any tax advice or other professional advice. Clients should clearly acknowledge and confirm that final decision is reserved by Hong Kong Inland Revenue Department through its tax assessment process. In the event of any inconsistency between the English and Chinese versions of this content, the English version shall prevail.

Further Information
The above information is mainly extracted from the website of the “The Hong Kong 2023-24 Budget”. Please visit https://www.budget.gov.hk/2023/eng/speech.html or contact our Tax Service Department (email: tax@atrixbiz.com) for further details.


The Hong Kong 2023-24 Budget
[ 24th February 2023 ]

Corporate Tax
Hong Kong adopts territorial tax system. Profits tax shall be charged on every person carrying on trade, profession or business in Hong Kong in respect of the profits arising in or derived from Hong Kong from such trade, profession or business regardless of the nationality, domicile or residence of a person.
Individual Tax
Hong Kong salaries tax is charged on every individual in respect of his/her income arising in or derived from any office, employment or any pension in Hong Kong. All income from a “Hong Kong sourced employment” is liable to tax irrespective of the locations for rendering the services, subject only to certain statutory exemptions.
Tax Investigation and Filed Audit Support
Hong Kong upholds simple tax system and its tax rate is one of the lowest in the world which requires a high degree of compliance of taxpayers. In order to protect government revenue, the IRD will review the submitted tax returns periodically by way of field audit and investigation.
Tax Policies in Hong Kong
Double Taxation Relief / Withholding Taxs / Advance Ruling in Hong Kong
/ Common Reporting Standard ("CRS") and Automatic Exchange of Financial Account Information ("AEOI")