The Hong Kong Financial Secretary, Mr Paul Chan Mo-po has announced the 2026-2027 Budget included a series of measures to spur growth.
NOVA, as your reliable business partner, knows it may be a hard time for most of the business, thus we have extracted some of the main key points which may benefit your business as follows.
Government Support & Relief Measures
Support Measures
- Rates concession for domestic properties for the first 2 quarters of 2026-27, subject to a $500 ceiling per quarter
- Rates concession for non-domestic properties first 2 quarters of 2026-27, subject to a $500 ceiling per quarter
- Reduction in salaries tax and tax under personal assessment for the assessment year 2025-26 by 100%, subject to a $3,000 ceiling
- Reduction in profit tax for the assessment year 2025-26 by 100%, subject to a $3,000 ceiling
- Increasing the basic allowance and single parent allowance from $132,000 to $145,000, and the married person’s allowance from $264,000 to $290,000.
- Increasing the child allowance and additional child allowance from $130,000 to $140,000.
- Increasing the allowance for maintaining a dependent parent or grandparent aged 60 or above from $50,000 to $55,000. The same increase applies to the additional allowance for taxpayers residing with these parents or grandparents;
- Increasing the allowance for maintaining a dependent parent or grandparent aged 55 to 59 from $25,000 to $27,500. The same increase applies to the additional allowance for taxpayers residing with these parents or grandparents
- Raising the deduction ceiling for elderly residential care expenses from $100,000 to $110,000 for taxpayers whose parents or grandparents are admitted to eligible residential care homes.
Caring for the Community
- Re-employment Allowance Pilot Scheme: provision increased to over $220 million in 2026-27
Supporting Local Enterprises
- BUD Fund: injection of $200 million
- Raise funding ceiling for each Easy BUD application to $150,000
- Pilot scheme by HKECIC to support SMEs in exporting to higher-risk markets
- Waive fees of certificates issued by Centre for Food Safety for food product export for 2 years. Introduce a new unified brand for local agricultural and fisheries products
Driving AI+ Development
- Enhancing AI literacy: $50 million to help public organisations, tech enterprises and tertiary institutions set up AI application courses, seminars and competitions
- Empowering public services: $100 million to accelerate Government digital transformation with leading technologies
Northern Metropolis for I&T
- Hetao Co-operation Zone Hong Kong Park: $10 billion to accelerate land development, provide infrastructure, establish venture fund, etc.
- San Tin Technopole: establish dedicated company and inject $10 billion as initial capital
- $10 billion to support initial operation of Hung Shui Kiu Industry Park Company Limited, beginning operation this year
Promoting Finance+
- Offshore RMB market: reduce transaction costs for RMB and other currency conversions; attract more RMB-denominated bond issuances in Hong Kong; explore formation of offshore RMB yield curve
- Mutual Market Access: expedite launch of Chinese Government Bond futures in Hong Kong, inclusion of real estate investment trusts (REITs) in mutual access, and inclusion of RMB trading counter under Southbound Stock Connect
- Securities market reforms: consult the market on revised requirements for weighted voting right structures, facilitating secondary listing of overseas issuers, and implementing T+1 settlement cycles. Enhance structured product-listing framework and regulatory regime for listed companies
- Custodian platform: study the establishment of one-stop multi-asset class post-trade securities infrastructure, covering Mainland and Hong Kong equity and debt securities
- Asset and wealth management: legislate this year to enhance family offices and fund tax regime, and enable REITs privatisation. Amend the law next year to provide stamp duty waiver for transferring non-residential properties into REITs seeking to list
- Corporate treasury centres (CTCs): relax criteria for stamp duty relief for intra-group transfer of assets. Applicable to instruments signed from today (25 Feb 2026). Announce in the year enhancement measures for CTCs, including additional tax incentives
- Gold trading: explore tax concessions for eligible institutions conducting gold trading and settlement in Hong Kong
- Digital assets:
- CMU OmniClear to establish digital asset platform in the year to support issuance and settlement of digital bonds
- Establish licensing regime for digital-asset dealing and custodian service providers through legislation in the year
- Financial inclusion:
- Amend the law next year to extend MPF “Full Portability” coverage to those employed before 1 May 2025
- Consult the public this year on optimising recovery of default MPF contributions from employers
Trade Centre
- Preferential policy packages: including preferential arrangements on land grants, financial subsidies and tax incentives. Preferential tax rates at half rate or 5%. Introduce amendment to tax law this year
- $100 million to attract international, large-scale exhibitions with new elements
Intellectual Property Trading
- Tax deduction arrangements for capital expenditure in purchasing intellectual property: introduce legislation this year
- $28 million for Hong Kong Technology and Innovation Support Centre to provide patent evaluation and implement a 2-year Pilot Patent Valuation Support Scheme
- $52 million for Intellectual Property Academy on 2-year pilot
Aviation, Shipping, Logistics
- Introduce legislation this year to enhance tax-concession measures for maritime services industry, provide half-rate tax concession to eligible commodities traders, revamp existing ship registration arrangements, extend current arrangements under Air Transhipment Cargo Exemption Scheme, etc.
Higher Rates and New Revenue Measures Ahead
Increasing Revenue of Government
- Implement BEPS 2.0 by OECD‘s package by imposing the global minimum tax and implementing the Hong Kong minimum top‑up tax on large multinational enterprise groups with an annual consolidated revenue of or above EUR 750 million.
- Adjust stamp duty on residential properties valued over $100 million from 4.25% to 6.5%, with retrospective effect from 26 Feb 2026
Amount or value of the consideration (whichever is higher) is $100,000,001 – ＄109,574,470, rates is $4,250,000 + 30% of excess over $100,000,000
Amount or value of the consideration (whichever is higher) is＄109,574,471 and above, rates is 6.5%
Contact NOVA for Professional Service
NOVA’s professional team is ready to guide you through these new measures with clear, practical advice. Whether you’re optimizing tax benefits, adjusting your corporate structure, or planning future compliance, we ensure your business remains efficient and fully compliant.
Contact us today to take advantage of the available support opportunities and stay prepared for the upcoming changes.
