【CityLinkers Business School】2026 Policy Address Tax Benefits: A Guide for Enterprises and Individuals
For enterprises and individuals alike, this report shows substantive preferential tax benefits on both main fronts of “bringing in” and “going out” and “reducing family burdens.”
Enterprise Settlement: Dual-Track Benefits of 5% and Half-Tax
“The Policy Address” proposes to go all out to attract high-value-added enterprises to settle in Hong Kong. The Government will, based on enterprises’ investment plans and their substantive contribution to Hong Kong’s economy, provide tax concessions through investment promotion preferential policies.
On the industry front, the Government will also offer a 5% or half-tax concessionary rate to individual enterprises engaged in key industries such as finance, advanced manufacturing, innovation and technology research and development, headquarters activities, and logistics and supply chain management.
At the same time, the Government will also submit a bill to the Legislative Council to provide additional tax concessions and flexibility for pre-approved corporate treasury centres and associated corporations, further strengthening Hong Kong’s position as a treasury centre for multinational enterprises.
To reduce the cost of intellectual property transactions, the Government will submit legislative amendments this year to implement tax deductions for capital expenditure incurred in purchasing intellectual property or acquiring rights to use intellectual property under licensing arrangements.
Funds and Commodities: Ecosystem Tax Benefits Increased
In respect of international asset and wealth management, “the Policy Address” proposes two Real Estate Investment Trust (REIT) bills: submitting a bill within this year to facilitate REIT privatisation or restructuring; and submitting another bill in the first half of 2027 to provide stamp duty relief for non-residential property transfers for REITs intending to list, while simplifying procedures to attract quality overseas REITs to dual-list in Hong Kong.
On the commodities front, to expand the international metals trading and delivery network, the Government will implement a half-tax concession for physical commodities trading, and study providing tax concessions for qualifying activities in the gold and commodities trading ecosystem, with a proposal to be submitted to the Legislative Council for consultation next year.
These series of measures will help activate Hong Kong’s financial market.
Facing the challenge of demographic structure, “the Policy Address” has introduced an additional “a package of measures” to encourage childbirth.
The $20,000 newborn baby reward will be extended for three years; for second and subsequent newborns, the reward will be increased to $30,000 for a period of three years; the relevant child allowance will also be raised from $140,000 to $160,000; and eligible families will be granted a reduction of up to $20,000 in stamp duty on the purchase of residential property. For citizens who are planning to start a family or upgrade their homes, this is direct cash and tax relief.
Planning Early to Seize Policy Perks
Overall, the tax deployment in “the Policy Address” focuses both on attracting enterprises and capital to settle in Hong Kong and on family livelihood.
The author suggests that enterprises intending to settle in Hong Kong should consult experienced professional institutions on tax structure as early as possible; individuals may review their family financial and tax arrangements in light of the new childbirth and property purchase benefits. Preparing well before the policies are implemented is the only way to securely seize this wave of dividends.
Paxson Fung, Partner, CityLinkers Group
For original article, please visit: https://www.edigest.hk/2042368
