Hong Kong: HKSAR 2025 Policy - Tax Incentives

The Chief Executive’s 2025 Policy Address outlines various tax incentives aimed at attracting investment, fostering economic growth and supporting industries. These measures build on existing frameworks and include enhancements to preferential regimes, concessions for specific sectors, and family-related deductions. Below is a structured summary based on the document's key references:

1. General Framework for Attracting Enterprises and Industries

• Preferential Policy Packages: The government will formulate packages including tax incentives (alongside land grants, premiums, and subsidies) to attract high-value-added industries and high-potential enterprises. 

2. Enhancements to Preferential Tax Regimes for Funds and Family Offices

• Funds, Single Family Offices, and Carried Interest: Further enhancements to attract more funds to establish a presence in Hong Kong. 
• Support for Family Offices: Assistance for at least 220 family offices to set up or expand operations in Hong Kong from 2026 to 2028.

3. Tax Concessions for Corporate Treasury Centres (CTCs)

• Enhanced Measures for Mainland Enterprises: There will be a review of existing tax concessionary measures for corporate treasury centres, to attract more Mainland enterprises to establish CTCs in Hong Kong, with specific recommendations for enhancement expected in the first half of 2026. 

4. Sector-Specific Tax Concessions

• Commodity Traders: Introduction of half-rate tax concessions to encourage businesses to set up in Hong Kong, driving demand for shipping and maritime services.
• Maritime Services: Stepped-up promotion of tax concessions to strengthen high-value-added services like ship management, leasing, marine insurance, maritime law, and arbitration.
• Air Passenger Departure Tax Exemptions: Expansion starting October 2025 to include passengers transiting to Hong Kong by sea or land, enhancing the Greater Bay Area's intermodal network.
• Develop a Premium Arts Trading Hub: Complete studies with the sector on taxation, financing, talents and other related areas of art trading in 2026.

5. Tax Incentives to Promote Fertility

• Home Loan Interest or Domestic Rents Deduction: Raised ceiling to support families.
• Medical Expenses for Assisted Reproductive Services: New tax deduction introduced.
• Child Allowances: Increased basic child allowance and additional allowance in the year of birth.
• Extended Additional Child Allowance for Newborns: From the 2026/27 year of assessment, extended from one to two years, allowing taxpayers to claim $260,000 per child in the first two years post-birth (applicable to children under age two by year-end).

These incentives support Hong Kong's development as a major financial, trading, and arts hub, and aim to attract more investments and high-value activities.

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Reference/Citation
HKSAR 2025 Policy Address

香港特別行政區政府2025 施政報告