Hong Kong SAR

Individual - Significant developments

Last reviewed - 31 December 2020

Tax concessions for carried interest

The Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Ordinance 2021 was enacted on 7 May 2021. The Ordinance excludes 100% of eligible carried interest from employment income for the calculation of salaries tax. The carried interest tax concession applies to amounts received by or accrued to a qualifying employee for provisions of qualified investment management services on or after 1 April 2020 retrospectively.

Tax reduction for 2020/21

The Revenue (Tax Concessions) Ordinance 2021 was enacted on 7 May 2021to give effect to the 100% reduction of salaries tax and tax under personal assessment for year of assessment 2020/21, subject to a cap of HKD 10,000.

Abolition of the doubled ad valorem stamp duty on transfer of non-residential property

The Stamp Duty (Amendment) Ordinance 2021 was gazetted on 19 March 2021 to abolish the Doubled Ad Valorem Stamp Duty (DSD) imposed on transfer of non-residential property in Hong Kong. The Ordinance is deemed to have come into operation on 26 November 2020. Accordingly, transfer of non-residential property in Hong Kong executed on or after 26 November 2020 is subject to ad valorem stand duty at Scale 2 rates ranging from HKD 100 (for property consideration of up to HKD 2 million) to 4.25% (for property consideration exceeding HKD 20 million).