Hong Kong SAR Budget 2011/2012
Tax measures summary & Deloitte's commentary
Financial Secretary, Mr John Tsang, delivered his fourth HKSAR Budget to the Legislative Council on Wednesday 23 February 2011. The Deloitte Hong Kong Budget Team, led by Yvonne Law, Tax Partner and National Chief Knowledge Officer, has prepared a summary of the Budget highlights and a commentary on the new Budget measures.
Learn more by following the links below for Deloitte's press release and newsletters on Budget commentary, and the Budget Speech presented by Financial Secretary.
Budget Speech by Hong Kong SAR Financial Secretary
On 2 March 2011, The Financial Secretary of Hong Kong SAR proposed amendments to the 2011/12 Budget to replace his former proposed measure made a week earlier to offer a one-off injection of HK$6,000 into all MPF accounts. The proposed amendments include:
- giving a one-time cash payment of HK$6,000 to all Hong Kong permanent residents, who are aged 18 or above;
- offering a one-time 75% reduction of salaries tax and tax under personal assessment, subject to a ceiling of HK$6,000; and
- an unspecified sum of money would be allocated to help those people that are not able to benefit from the cash hand-out.
Yet, the implementation details have not been officially announced. Regarding point (1) and (3) above, news reported on March 7 & 8 revealed that the Financial Secretary suggested implementing an interest payment mechanism as an incentive to encourage people to save the HK$6,000 cash payment. And, he planned to put extra money of a sum of more than HK$1 billion in the Community Care Fund for non-permanent residents who do not qualify for such cash hand-out.