Profits Tax
| Rates of Tax |
2006/2007 |
2005/2006 |
| Companies |
17.5% |
17.5% |
| Unincorporated businesses |
16% |
16% |
Salaries Tax
| Rates of Tax |
2006/2007 |
|
|
2005/2006 |
| HK$ |
|
|
HK$ |
|
| First 30,000 at |
2% |
|
First 30,000 at |
2% |
| Next 30,000 at |
7% |
|
Next 30,000 at |
8% |
| Next 30,000 at |
13% |
|
Next 30,000 at |
14% |
| On the remainder |
19% |
|
On the remainder |
20% |
 |
| Standard rate |
16% |
|
Standard rate |
16% |
| Personal Allowances |
2006/2007 |
2005/2006 |
|
| |
HK$ |
HK$ |
|
| Basic allowance |
100,000 |
100,000 |
|
| Married person's allowance |
200,000 |
200,000 |
|
| Child allowances |
|
|
|
|
1st to 9th child (each) |
40,000 |
40,000 |
|
|
| Dependent parent / grandparent allowance |
|
|
|
| |
Aged 60 or above |
|
|
| |
- not residing with taxpayer |
30,000 |
30,000 |
| |
- residing with taxpayer |
60,000 |
60,000 |
|
| |
Aged 55 to 59 |
|
|
| |
- not residing with taxpayer |
15,000 |
15,000 |
|
- residing with taxpayer |
30,000 |
30,000 |
|
|
| Dependent brother / sister allowance |
30,000 |
30,000 |
|
(for whom no child allowance claimed) |
|
|
|
| Single parent allowance |
100,000 |
100,000 |
|
| Disabled dependant allowance |
60,000 |
60,000 |
|
(in addition to any allowances already granted for the disabled person) |
|
|
Deductions
| Maximum deduction for amount paid for: |
2006/2007 |
2005/2006 |
| |
HK$ |
HK$ |
| Self-education expenses |
40,000 |
40,000 |
| Home loan interest |
100,000 |
100,000 |
| Elderly residential care expenses |
60,000 |
60,000 |
|
Contributions to recognised retirement schemes |
12,000 |
12,000 |
|
Charitable donations |
25% of assessable income |
25% of assessable income |
Property Tax
Basis of Taxation
Property tax is charged on the owner of any land or buildings in Hong Kong at the standard rate (16%) on the net assessable value of such land or buildings.
Estate Duty
Estate duty was abolished effective 11 February 2006. Estates of persons who passed away on or after 11 February 2006 are not subject to estate duty. The estate duty chargeable in respect of deaths occurring between the period from 15 July 2005 to 10 February 2006 with the taxable estate value exceeding HK$7.5 million is reduced to a nominal duty of HK$100. Estate duty chargeable in respect of deaths occurring before 15 July 2005 is as follows.
Rates of Duty
| Taxable estate value |
2005/2006 |
| HK$ |
Rate |
| Not over $7.5 million |
Nil |
| Not over $9 million |
5% |
| Not over $10.5 million |
10% |
| Over $10.5 million |
15% |
Estate duty is payable at the rate specified on the principal value of the property. However, marginal relief is available where a small increase in the value of an estate which brings it into a higher rate band would otherwise result in a large additional liability. Quick succession relief is also available in certain circumstances where estate duty becomes payable a second time within five years on any leasehold property or on a business (not being a business carried on by a company), or interest therein.
Stamp Duty
Rates of Duty
Immovable Property: conveyance on sale
| Property consideration |
2006/2007 |
2005/2006 |
| HK$ |
|
|
| Up to 1,000,000 |
$100 |
$100 |
| 1,000,001 - 2,000,000 |
0.75% |
0.75% |
| 2,000,001 - 3,000,000 |
1.50% |
1.50% |
| 3,000,001 - 4,000,000 |
2.25% |
2.25% |
| 4,000,001 - 6,000,000 |
3.00% |
3.00% |
| 6,000,001 and above |
3.75% |
3.75% |
Marginal relief is available upon entry into each higher rate band.
Agreement for sale of residential property
Chargeable agreements executed on or after 1 April 1999 should be submitted for stamping within 30 days after execution. However, payment of the stamp duty may be deferred until the assignment is executed in conformity with the agreement or the date of re-sale of the property. The maximum period of deferral is 3 years after the execution of the agreement.
Hong Kong stock
With effect from 1 September 2001, the rate of stamp duty on stock transactions is 0.2% (HK$2 per HK$1,000) per transaction. This is payable half by the vendor and half by the purchaser.
Hong Kong bearer instrument
Duty of 3% of the market value is charged for any Hong Kong bearer instrument issued in respect of any stock.
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