Hong Kong Institute of Taxation: Suggests exemption of first-time property stamp duty.

Hong Kong's new "budget" will be released next Wednesday (28th). The Hong Kong Taxation Institute believes that the Hong Kong government should focus on studying ways to broaden the tax base and conduct a comprehensive review of the current tax system in Hong Kong. The Institute's honorary secretary Yeung Nga pointed out that broadening the tax base is not just about increasing government revenue, but making tax revenue more stable and balanced. During economic downturns, it may not be appropriate to introduce new types of taxes, but the Hong Kong government should be proactive and review the tax system early. In addition, the Hong Kong Taxation Institute also suggests exempting first-time property stamp duty. The Hong Kong Taxation Institute stated that with the implementation of global and local minimum taxes in Hong Kong starting in 2025, Hong Kong's tax system will become more complex than before. For large multinational companies, Hong Kong's current tax competitiveness may also be weakened, so it is particularly important to implement a series of measures, including providing tax simplification and enhancing tax certainty for businesses, as well as measures to promote the development of key strategic industries. Regarding the new "budget", the recommendations proposed by the Institute cover six major categories, including improving livelihoods; maintaining Hong Kong's competitiveness in the ever-changing international tax environment; seizing opportunities in emerging markets through closer economic cooperation; promoting the development of key strategic industries; strengthening the fairness and clarity of the tax system to enhance tax competitiveness; broadening the tax base and comprehensively reviewing the tax system in Hong Kong. In terms of improving livelihoods, the Hong Kong Taxation Institute suggests lowering the highest marginal tax rate for salaries to 15%; exempting first-time property stamp duty; salary tax deductions for inpatient expenses in private hospitals; salary tax deductions for medical insurance premiums; raising various exemption limits and allowing the sharing of exemptions for supporting parents, grandparents, great-grandparents, and tax deductions for eldercare expenses; removing the requirement that supporting parents, grandparents, and great-grandparents must "normally reside in Hong Kong" for tax exemptions; extending the application years for additional child allowances, and providing tax deductions for child-rearing expenses.