待有关法例通过后，税务局会自动按新的免税额以及新的边际税阶为纳税人计算2017/18课税年度暂缴税。纳税人只需填妥2016/17课税年度报税表而毋须另作申请。至于在2017/18 课税年度提高了个人进修开支的可扣除上限的处理方法，请参阅常见问题9 至 10条及示例三。
附件：常见问题9 至 10条及示例三
2017-18Budget – Tax Measures
In this 2017-18 Budget, the FinancialSecretary proposed a number of tax measures, all of which require legislativeamendments before implementation.
Reducingprofits tax, salaries tax and tax under personal assessment for the year ofassessment 2016/17
Increasingthe width of marginal tax bands
Increasingdisabled dependant allowance and dependent brother or dependent sisterallowance
Raisingthe deduction ceiling for self-education expenses
Extendingthe entitlement period for home loan interest deduction
Highlights of the measures andimplementation details are set out in the following paragraphs. Answers tofrequently asked questions ( FAQ) and illustrative examples showing how theproposed measures would reduce taxpayers’ salaries tax and tax under personalassessment are also provided.
You may use the tax computationprogram provided by GovHK to calculate your salaries tax and tax under personalassessment if the above proposals are implemented.
Reducing profits tax, salaries tax and tax under personalassessment for the year of assessment 2016/17
The Financial Secretary proposed aone-off reduction of profits tax, salaries tax and tax under personalassessment for the year of assessment 2016/17 by 75%, subject to a ceiling of$20,000 per case. This measure will be effected by amending the Inland RevenueOrdinance.
For profits tax, the ceiling of thetax reduction is applied to each business. For salaries tax, the ceiling isapplied to each individual taxpayer; but for couples jointly assessed, theceiling is applied to each couple. For personal assessment, single taxpayerswill each be subject to the ceiling. Married couples must make their personalassessment election together and the ceiling will therefore apply to eachcouple.
The proposed tax reduction is notapplicable to property tax. Individuals with rental income, if eligible forpersonal assessment, may be able to enjoy such reduction under personalassessment.
A taxpayer who is separatelychargeable to salaries tax and profits tax can enjoy tax reduction under eachof the tax types. For a taxpayer having business profits or rental income andelecting for personal assessment, the reduction will be based on the taxpayable under personal assessment. It might be different from the amount of taxreduction he would get if he was not assessed under personal assessment. Theexact position will need to be evaluated case by case. The Inland RevenueDepartment will check if the election will reduce the amount of tax payable ineach case, and assess each taxpayer in the way most advantageous to him.
To apply for personal assessment, ifeligible, the taxpayer should complete Part 6 of his tax return for individuals(BIR60) for the year of assessment 2016/17. Individuals having salaries incomeonly, but no business profits and rental income, need not elect for personalassessment.
The proposed reduction will reducetaxpayers’ amount of tax payable for the year of assessment 2016/17. Taxpayersshould file their profits tax returns and tax returns for individuals for theyear of assessment 2016/17, to be issued in coming April and May respectively,as usual. Upon enactment of the relevant legislation, the Inland RevenueDepartment will effect the reduction in the final assessment. For any finalassessment for 2016/17 issued before the enactment of the law, the InlandRevenue Department will make a reassessment after the enactment. It is expectedthat excess tax paid will be refunded starting from late July 2017. Taxpayersare not required to make any applications or enquiries to the Department.
The proposed tax reduction will onlybe applicable to the final tax for the year of assessment 2016/17, but not tothe provisional tax of the same year. Therefore, taxpayers are still requiredto pay their provisional tax on time despite the proposed reduction. The provisionaltax paid will be applied to pay the final tax for the year of assessment2016/17 and the provisional tax for the year of assessment 2017/18. Excessbalance, if any, will be refunded.
Increasing the width of marginal tax bands
The Financial Secretary proposed toincrease the width of marginal tax bands from $40,000 to $45,000 commencingfrom the year of assessment 2017/18. The present marginal tax bands and theproposed tax bands are shown in the table below:
Year of Assessment
Proposed(From 2017/18 onwards#)
Net Chargeable Income(Tax band)
Net Chargeable Income(Tax band)
On the first
On the next
On the next
Increasing disabled dependant allowance and dependent brotheror dependent sister allowance
The Financial Secretary proposed toincrease the disabled dependant allowance from $66,000 to $75,000 and thedependent brother or dependent sister allowance from $33,000 to $37,500effective from the year of assessment 2017/18.
Raising the deductionceiling for self-education expenses
The Financial Secretary proposed toraise the deduction ceiling for self-education expenses from $80,000 to$100,000 effective from the year of assessment 2017/18.
Extending the entitlement period for home loan interestdeduction
The Financial Secretary proposed toextend the entitlement period for deduction for home loan interest from 15 to20 years of assessment commencing from the year of assessment 2017/18, whilemaintaining the current deduction ceiling of $100,000 a year.
Implementation details of increasing tax band width, increasingallowances and raising deduction ceiling
After enactment of the relevantlegislation, the Inland Revenue Department will automatically apply the newlevel of allowances and the new marginal tax bands in calculating the 2017/18provisional salaries tax. Taxpayers are only required to complete their taxreturns for the year 2016/17 and they do not need to make separateapplications. As for the raised deduction ceiling for self-education expenses,please refer to FAQ 9 to 10 and Example 3 for the arrangements.
ATT: FAQ 9 to 10 and Example 3
9. Q:I paid Self-education Expenses of $110,000 in2016/17, which exceeded the specified maximum of $80,000 for 2016/17. Whatamount should I write down in the 2016/17 tax return for individuals (BIR60)for claiming the Self-education Expenses deduction?
A:You should state the actual amountof $110,000 paid in Part 4.3 of your 2016/17 tax return for individuals (BIR60). After enactment of the relevant legislation, the Assessor will allow therespective maximum deductions at $80,000 and $100,000 when computing your2016/17 final salaries tax and 2017/18 provisional salaries tax liabilities.
10. Q:After I had filed my 2016/17 tax return for individuals(BIR 60), the educational institute, to which I had paid for the first halfyear, informed me that the course fee payable in 2017/18 will be increased from$79,000 to $100,500. What should I do if I want to claim the increaseddeduction?
A: If the amount of Self-educationExpenses paid or payable for 2017/18 exceeds $80,000, you may apply in writingfor holding over the 2017/18 provisional salaries tax upon receiving theassessment and notice for payment of provisional salaries tax. The applicationmust be lodged not later than:
(a) 28 days before the due date forpayment of the provisional tax, or
(b) 14 days after the date of issueof the notice for payment of the provisional tax,
whichever is the later.
In computing the provisional salariestax payable for 2017/18, the Assessor will not deduct $100,500 as the amount ofSelf-education Expenses but will restrict the deduction to $100,000.