Hong Kong 2025-26 Budget: Key Tax Measures Impacting Businesses and Individuals

On 26 February 2025, Financial Secretary Paul Chan delivered Hong Kong’s 2025-26 Budget, focusing on “Accelerating Development through Reform and Innovation.”  With a projected HK$87.2 billion fiscal deficit for 2024-25, the government has introduced a reinforced fiscal consolidation plan, aiming to restore a surplus by 2028-29. The Budget also outlines key tax measures to strengthen economic resilience, support new industries, and enhance competitiveness.

Our Hong Kong 2025-26 Budget Commentary provides insights into these developments and their impact on businesses and individuals. Key highlights include:

• Section 1 – Corporate Taxpayers and Businesses: Introduction of a Global Minimum Tax and expansion of the tax treaty network to generate HK$15 billion in annual revenue from 2027-28. Additional profits tax relief and targeted tax incentives for maritime services, family offices, carried interest, and Intellectual Property transactions.
• Section 2 – Individual Taxpayers: A one-off salaries tax relief to ease financial burdens amid economic uncertainties.
• Section 3 – Other Tax Measures: Adjustments to property market regulations, including reduced stamp duties and extended rates concessions, as well as increases in air passenger departure tax and new basketball betting regulations to boost public revenues.

As Hong Kong navigates global economic challenges, these measures aim to balance fiscal sustainability with long-term growth and innovation.

Download and read our Hong Kong 2025-26 Budget Commentary for a full analysis of how these key developments may impact your business and personal tax planning.