What tax relief is PwC proposing for Hong Kong?

PwC proposes increasing tax allowances by at least 10% and a 100% reduction in profits, salaries, and personal assessment tax, capped at HK$1,500.

How does PwC's deficit forecast compare to the government's for Hong Kong?

PwC forecasts a HK$200 million deficit, significantly lower than the government's original estimate of HK$67 billion.

What are PwC's suggestions for capital investment in Hong Kong?

PwC suggests a 150% tax deduction for AI investments and a half-rate tax concession for regional headquarters.

Home / Business and Economy / PwC Urges Major Tax Cuts for Hong Kong

PwC Urges Major Tax Cuts for Hong Kong

19 Jan

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Summary

PwC predicts a HK$200 million deficit, a significant drop from government estimates.
Stamp duty revenues are expected to significantly exceed initial government forecasts.
The firm recommends increasing tax allowances and offering a 100% tax reduction.

Professional services firm PwC is urging for significant tax relief measures to be included in the upcoming budget, aiming to benefit taxpayers across all income levels. The firm projects a consolidated deficit of HK$200 million for this fiscal year, a notable improvement from the government's original HK$67 billion deficit estimate. This improved outlook is primarily attributed to a substantial increase in stamp duty revenues.

Despite the operating account's expected return to surplus, PwC highlights ongoing challenges within the capital account. Revenue from land sales is anticipated to be lower than initially projected. The firm suggests increasing all salaries tax and personal assessment allowances by at least 10%, and proposes a 100% reduction in profits tax, salaries tax, and personal assessment tax for the current fiscal year, capped at HK$1,500.