Rental Reimbursement schemes – Advance Warning of possible changes
There is a proposed tax deduction for domestic rental expenses to a deduction ceiling of HKD $100,000 per year of assessment as part of the recent Budget.
Full details are unlikely to be available for several months as the bill is intended to be introduced to LegCo in the second quarter of this year.
This would clearly seem to be an alternative to, and not in addition to the current rental reimbursement schemes offered by individual companies. The overall intention of this measure was to “reduce the hardship on the people” of Hong Kong, and it looks to be a way of the government giving some tax relief to those persons working for SME’s that don’t run reimbursement schemes.
It is possible that Employers existing Rental Reimbursement schemes may require review when specific details are announced, however at this time there is no action required.
Black Mountain are actively following this, and as more information becomes available we will keep you informed.
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