Hong Kong Finalizes Increase in Salaries Tax Reduction

The allowable reduction for Hong Kong’s salaries tax in the recently completed 2025-26 tax year, and its basic allowance for the 2026-27 tax year, were increased in an ordinance that received assent May 22.

The Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Ordinance 2026 sets the salaries tax reduction for the 2025-26 tax year, which ended March 31, at 100% of tax owed up to a maximum of HK$3,000 (US$382.80), up from HK$1,500 for the 2024-25 tax year.

The ordinance also increased the basic allowance for the 2026-27 tax year, which began April 1, to HK$145,000, from HK$132,000. ...