Reducing profits tax, salaries tax and tax under personal assessment for 2021/22

  • Writer : Admin
  • Date : 2022.04.27

The Financial Secretary proposed a one-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2021/22 by 100%, subject to a ceiling of $10,000 per case.  The relevant legislation for the tax reduction was passed by the Legislative Council and gazetted on 14 April 2022.


For profits tax, the ceiling of the tax reduction is applied to each business.


For salaries tax, the ceiling is applied to each individual taxpayer; but for married couples jointly assessed, the ceiling is applied to each married couple (i.e. capped at $10,000 in total).


For personal assessment, the ceiling is applied to each single taxpayer or married person who elects for personal assessment separately from his / her spouse. If a taxpayer elects for personal assessment jointly with his / her spouse, the tax reduction is capped at $10,000 for the married couple.