Hong Kong: Highlights of Budget for 201314 The Budget for 201314 was presented to the Legislative Council

by the Financial Secretary on 27 February 2013. Details of the taxrelated proposals, which unless otherwise indicated will apply from 1 April 2013 when they are enacted, are summarized below. Direct taxation Corporate taxation

A 75% reduction of profits tax for the year of assessment 2012 13 was proposed, subject to a ceiling of HKD10,000 per case.

Personal taxation

A 75% reduction of salaries tax and tax under personal assessment for the year of assessment 201213, subject to a ceiling of HKD10,000 per case. Child allowance and the additional one-off child allowance in the year of birth to be increased from HKD63,000 to HKD70,000. The deduction ceiling for self-education expenses to be increased from HKD60,000 to HKD80,000. An extra allowance to be provided to recipients of Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living Allowance and Disability Allowance, equal to one months allowance.

Indirect taxation

Waiver of business registration fees for 201314. Waiver of property rates for 201314, capped at HKD1,500 per tenement per quarter.

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