Government welcomes passage of tax concessions and increase in child allowance
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- the reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2022/23 by 100 per cent, subject to a ceiling of $6,000 per case; and
- increasing the basic child allowance and the additional child allowance for each child born during the year of assessment under salaries tax and tax under personal assessment from $120,000 to $130,000 starting from the year of assessment 2023/24.
"The two proposals mainly aim at alleviating the burden of taxpayers. The one-off tax concessions will benefit about 1.9 million taxpayers of salaries tax and tax under personal assessment, and 133 500 tax-paying businesses, with the total government revenue forgone amounting to about $9.2 billion. The increase in child allowance will benefit around 324 000 taxpayers and reduce the tax revenue of the Government by about $610 million a year," Mr Chan said.
The tax concessions will be reflected in taxpayers' final tax payable for the year of assessment 2022/23. Moreover, the Inland Revenue Department will apply the new level of child allowance in calculating the provisional tax for taxpayers for the year of assessment 2023/24.
Ends/Wednesday, April 19, 2023
Issued at HKT 15:22
Issued at HKT 15:22
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