The Hong Kong government has announced a series of tax relief initiatives aimed at alleviating financial pressures on both individuals and businesses. As part of the 2025 Budget, a significant one-time tax reduction for the 2024/25 fiscal year has been proposed. This measure includes a full waiver of profits tax, salaries tax, and tax under personal assessment, with a cap of $1,500 per case. It is anticipated that this initiative will benefit approximately 2.14 million salary taxpayers and 165,400 enterprises, resulting in a total reduction of government revenue by $3.1 billion.

To ensure smooth implementation, taxpayers are required to submit their returns as usual, with the tax reduction being applied during the final assessment process. Notably, this relief does not extend to provisional tax payments for the same period. Taxpayers must continue making timely provisional tax payments, which will be adjusted against their final tax liability for 2024/25 and the provisional tax for 2025/26. Moreover, property tax is excluded from this relief, although those earning rental income may still qualify through personal assessment. Legislative steps have also been taken to expedite the process, including introducing the Stamp Duty (Amendment) Bill 2025 and issuing an order under the Public Revenue Protection Ordinance.

The introduction of these tax relief measures underscores the government's commitment to supporting economic stability and fostering a more favorable business environment. By providing immediate financial relief to individuals and businesses, the government aims to stimulate economic activity and enhance overall competitiveness. Such proactive policies reflect a positive approach toward addressing the financial challenges faced by residents and companies alike, ultimately contributing to sustained growth and prosperity in Hong Kong.