Hong Kong Policy Address 2024-25

On 16 October 2024, the Chief Executive announced the 2024 Policy Address with the underlying theme “Reform for Enhancing Development and Building Our Future Together” (Policy Address). We set out below the key tax measures proposed under the Policy Address.

Enhance the New Capital Investment Entrant Scheme

Under the original New Capital Investment Entrant Scheme, only non-residential real estate will be counted as permissible investment assets for purpose of meeting the HKD30 million investment requirements, subject to cap of HKD10 million. Residential real estate will not be counted.

Under the Policy Address, the Government announced its goal to enhance the New Capital Investment Entrant Scheme by allowing the purchase of high-end residential properties. Investment in residential properties is now allowed provided that the transaction price of the residential property concerned is no less than HKD50 million, subject to cap of HKD10 million.

Enhance Hong Kong’s Status as an International Asset and Wealth Management Centre

According to the information provided by the Government, at present, there are 2,700 single‑family offices in Hong Kong. The Government will be consulting the industry on the proposal to add qualifying transactions eligible for tax concessions for funds and single‑family offices.

Promote Development of High Value-added Maritime Services

To strengthen the local maritime ecosystem, the Government will promote the existing tax concessionary measures for maritime services and also enhance the preferential tax regime (including introducing new tax deduction arrangements for ship lessors pursuant to international tax rules).

Create a Commodity Trading Ecosystem

The Government is exploring the introduction of tax concessions and support measures to attract enterprises in the Mainland China and overseas to set up businesses in Hong Kong to build a commodity trading ecosystem in Hong Kong. It is believed that their presence and operation in Hong Kong can drive the maritime services industry, and boost demand for related financial and professional services.

Promote Fertility

Starting from the year of assessment 2024-25, the Government will provide a tax deduction for expenses on assisted reproductive services under salaries tax and personal assessment, subject to a deduction ceiling of HKD100,000 per year.