The Financial Secretary of Hong Kong has officially presented the 2014/15 Budget. Among the areas addressed are corporate and personal taxes, social security and incentives for private companies, reports Nair & Co.’s International Services team.

1. Hong Kong Announces Budget for 2014/2015
(Bristol, UK) - The Financial Secretary of Hong Kong has officially presented the 2014/15 Budget. Among
the areas addressed are corporate and personal taxes, social security and incentives for private
companies, reports Nair & Co.’s International Services team.
Following are significant highlights of the 2014/15 Budget:
Corporate taxation
 Proposed – a reduction of current profits tax, up to HKD 10,000.
 Under review – interest deduction in relation to corporate treasury activities.
 Prolonging the application period by one year for special concessionary measures under SME
Financing Guarantee Scheme.
 Offering an Enterprise Support Programme to support R&D activities in private companies,
under the Innovation and Technology Fund (subject to a maximum of HK$10 million).
Personal taxation
 A one-off reduction of 75% of the current salaries tax and tax under personal assessment
(subject to a maximum of HKD 10,000).
 Proposed – increasing the maximum deduction for elderly residential care expenses to HKD
80,000 (previously HKD 76,000).
 Proposed – increase in dependent parent/grandparent allowance (2014/15 and onwards):
 Allowance for Dependent parents/grandparents (for each dependant):
 Between 55 and 59 years of age: HKD 20,000.
 Age of 60 years or above: HKD 40,000.

2.  Allowance for additional dependent parents/grandparents (for every dependant who is
staying with the taxpayer constantly throughout the year):
 Between 55 and 59 years of age: HKD 20,000.
 Age of 60 years or above: HKD 40,000.
Businesses are expected to benefit from the reduction in current profits tax up to HKD 10,000. Further,
introduction of the Enterprise Support Programme to certain R&D activities in private companies is also
a welcome move. Nair & Co. advises companies operating in Hong Kong to carry out a detailed analysis
of the 2014/15 Budget to assess actual impact.
For more information about doing business overseas or to learn more about our International
Expansion Services team please contact us.
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