2008/2009 Hong Kong Budget Tax Rates Card 

Rates of tax	2008/2009	2007/2008
Companies	16.5%	17.5%
Unincorporated businesses	15%	16%

Salaries Tax

Rates of tax	2008/2009		2007/2008
First HK$40,000	2%	First HK$35,000	2%
Next HK$40,000	7%	Next HK$35,000	7%
Next HK$40,000	12%	Next HK$35,000	12%
On the remainder	17%	On the remainder	17%
Standard rate	15%	Standard rate	16%

Personal allowances		2008/2009	2007/2008
Basic allowance		HK$108,000	HK$100,000
Married person's allowance		HK$216,000	HK$200,000
Child allowance   1st to 9th child (each)  Year of birth  Other years		HK$100,000 HK$50,000	HK$100,000 HK$50,000
Dependent parent /  grandparent allowance   Aged 60 or above  not residing with taxpayer  residing with taxpayer   Aged 55 to 59  not residing with taxpayer  residing with taxpayer		HK$30,000 HK$60,000     HK$15,000 HK$30,000	HK$30,000 HK$60,000     HK$15,000 HK$30,000
Dependent brother / sister allowance (for whom no child allowance claimed)		HK$30,000	HK$30,000
Single parent allowance		HK$108,000	HK$100,000
Disabled dependant allowance (in addition to any allowances already granted for the disabled person)		HK$60,000	HK$60,000

Deductions (maximum deduction for amount paid for):	2008/2009	2007/2008
Self-education expenses	HK$60,000	HK$60,000
Home loan interest	HK$100,000	HK$100,000
Elderly residential care expenses	HK$60,000	HK$60,000
Contributions to recognised retirement schemes	HK$12,000	HK$12,000
Charitable donations	35% 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 (15%) on the net assessable value of such land or buildings.

Stamp Duty
Immovable property: conveyance on sale

Rates of duty on property consideration	2008/2009	2007/2008
Up to HK$1,000,000	HK$100	HK$100
HK$1,000,001 - $2,000,000	HK$100	HK$100
HK$2,000,001 - $3,000,000	1.50%	1.50%
HK$3,000,001 - $4,000,000	2.25%	2.25%
HK$4,000,001 - $6,000,000	3.00%	3.00%
HK$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.



Note 1:
The information on this page is based on current taxation laws and practices including legislative proposals and measures contained in the 2008/2009 Hong Kong Budget announced on 27 February 2008.
  
Legislative proposals do not become law until their enactment and may be modified by the Legislative Council in the meantime.
    
The above information is of a general nature only.  It is not meant to be comprehensive and does not constitute legal or tax advice.  The application and impact of laws can vary widely based on the specific facts involved.  Before taking any action, please ensure that you obtain advice specific to your circumstances from your PricewaterhouseCoopers client service team or your other tax advisers.