Date
19 October 2017
Chief Executive Carrie Lam says profits tax will be cut to 8.25 percent from 16.5 percent. Photo: CNSA
Chief Executive Carrie Lam says profits tax will be cut to 8.25 percent from 16.5 percent. Photo: CNSA

Carrie Lam halves profits tax

Chief Executive Carrie Lam Cheng Yuet-ngor announced a profits tax cut in her maiden policy address at the Legislative Council on Wednesday.

Lam proposed halving the profits tax from 16.5 percent to 8.25 percent for the first HK$2 million earned by all companies.

The new policy will benefit particularly small and medium-sized enterprises. 

A 300 percent tax deduction will be given to all companies for the first HK$2 million spent on research and development, with a 200 percent deduction applied to any further spending.

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BN/RA

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