HONG KONG, March 16, 2026 – The Government of the Hong Kong SAR has formally introduced the Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Bill 2026 to the Legislative Council. The bill aims to provide legal effect to the tax relief measures announced in the 2026/27 Budget.
The introduction of this bill provides businesses and individuals with a clear legal framework for tax planning ahead of the new financial year, which begins on April 1.
Key Corporate Tax Measures
The most significant update for international companies is the one-off tax reduction for Profits Tax for the 2025/26 year of assessment.
The reduction is set at 100% of the assessed tax.
The relief is capped at HK$3,000 per case.
Furthermore, the bill confirms strategic incentives for the Digital Assets and Intellectual Property (IP) sectors. This includes expanding the scope of tax-exempt investments for funds to include cryptocurrencies and precious metals, positioning Hong Kong as a leading hub for the Web3 industry.
Individual Tax and Personal Allowances
For residents and expatriate professionals, the bill proposes a substantial increase in personal allowances starting from the 2026/27 year of assessment:
Basic Allowance: Increased from HK$145,000.
Married Person’s Allowance: Increased to HK$290,000.
Child Allowance: Raised to HK$140,000, with a double allowance (up to HK$280,000) applicable for newborns during the first two years.
Real Estate and Stamp Duty
The bill also formalizes the new Stamp Duty rates. Effective from February 26, 2026, the ad valorem stamp duty for residential property transactions exceeding HK$100 million has been raised to 6.5% to stabilize the luxury real estate market.
IRD Security Alert
Coinciding with the legislative process, the Inland Revenue Department (IRD) issued an urgent warning regarding fraudulent emails. Taxpayers are advised to ignore any requests for tax payments in Renminbi (RMB) or clicks on suspicious links. Official tax liabilities in Hong Kong are settled exclusively in HKD.
The bill is expected to pass all readings by the end of March, ensuring the measures are fully operational for the upcoming fiscal year.