The Hong Kong government has introduced a series of tax relief initiatives aimed at alleviating financial pressures on both individuals and businesses. The 2025 Budget, unveiled by the Financial Secretary, includes a significant one-time tax reduction for the 2024/25 fiscal year. This measure is designed to support economic recovery and stability by providing immediate financial relief to taxpayers and enterprises.

A comprehensive tax deduction plan has been proposed, offering a full exemption from profits tax, salaries tax, and personal assessment tax for the upcoming financial period. Each case will have a maximum benefit cap of $1,500, benefiting approximately 2.14 million salary earners and 165,400 business entities. This initiative is expected to reduce government revenue by $3.1 billion but aims to stimulate economic growth through increased disposable income for citizens and companies. Taxpayers must still submit their returns as usual; however, the reduction will be applied during the final tax assessment process. Notably, this relief does not apply to provisional tax payments or property tax, although those earning rental income may qualify under personal assessment.

To ensure swift implementation, the government plans to introduce the Stamp Duty (Amendment) Bill 2025 in the Legislative Council. Additionally, an order issued under the Public Revenue Protection Ordinance by the Chief Executive guarantees that these measures will take effect immediately. These steps reflect the government's commitment to supporting the community and fostering a resilient economy. By reducing the tax burden, the government aims to enhance financial well-being and encourage sustainable economic development.