On 23 February 2022, Hong Kong Financial Secretary Paul Chan delivered the 2022-23 Budget. Tax-related measures of the budget include:

• A reduction in the profits tax for the year of assessment 2021-22 by 100%, subject to a ceiling of HKD 10,000 (also applies for salaries tax and tax under personal assessment);
• A waiver of business registration fees for one year from 1 April 2022 to 31 March 2023;
• The introduction of a tax deduction for domestic rental expenses for individual taxpayers liable to salaries tax or tax charged under personal assessment who do not own any domestic property, the deduction capped at HKD 100,000 per year;
• Rates concession for domestic properties for four quarters of 2022-23, subject to a ceiling of HKD 1,500 per quarter in the first two quarters and a ceiling of HKD 1,000 per quarter in the remaining two quarters for each rateable property;
• Rates concession for non-domestic properties for four quarters of 2022-23, subject to a ceiling of HKD 5,000 per quarter in the first two quarters and a ceiling of HKD 2,000 per quarter in the remaining two quarters for each rateable property; and
• The introduction of a progressive rating system for domestic properties:
  • for domestic properties with a rateable value of HKD 550,000 or below, it is proposed that rates be charged at the present level of 5% of the rateable value; and
  • for domestic properties with a rateable value over HKD 550,000, it is proposed that rates be charged at 5% of the rateable value on the first HKD 550,000, and at 8% of the rateable value on the next HKD 250,000, and then at 12% on the rateable value exceeding HKD 800,000.

In delivering the budget, Financial Secretary Paul Chan also noted the government is planning to submit a legislative proposal in the second half of 2022 to implement the global minimum tax rate and other relevant requirements in accordance with the international consensus on the OECD's two-pillar solution. Further, the government will consider introducing a domestic minimum top-up tax with regard to large MNEs (EUR 750 million revenue) starting from the year of assessment 2024-25 to ensure that their effective tax rates reach the global minimum effective tax rate of 15% to safeguard Hong Kong's taxing rights.

For more information, click the following links for the Hong Kong 2022-23 Budget webpage and information published by the Inland Revenue Department on the 2022-23 Budget – Tax Measures.