The Inland Revenue (Amendment) Bill 2016, which aims to implement revenue measures proposed in the 2016-17 Budget, was gazetted today and will be tabled at the Legislative Council on March 16.
The measures include increasing the basic and single parent allowances from $120,000 to $132,000 and raising the married person's allowance from $240,000 to $264,000. About 1.93 million taxpayers will benefit.
Under the same category, the dependent parent/grandparent allowance for those aged 60 or above will be increased to $46,000, while those aged 55 or above but below 60 will see the allowance raised to $23,000. About 600,000 taxpayers will benefit.
The deduction ceiling for elderly residential care expenses will also be increased to $92,000.
Subject to LegCo passing the legislation, the proposals will take effect from the 2016/17 year of assessment.
The proposed one-off reduction of salaries tax, tax under personal assessment and profits tax will be reflected in taxpayers' final tax payable for 2015-16. About 1.96 million taxpayers and 130,000 tax-paying businesses will benefit.
