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Salaries Tax

Marginal Tax Bands and Tax Rates

64.       I propose to revert the marginal bands and marginal rates for salaries tax to their 2002?3 levels.  In other words, the band width will be increased from $30,000 to $35,000, and the two highest marginal tax rates will be reduced from 13 per cent and 19 per cent to 12 per cent and 17 per cent respectively.  The basic allowance and standard rate will remain unchanged.


Child Allowance


65.       To reduce the burden of parents in raising their children, I propose to increase the child allowance from $40,000 to $50,000 for each child.  In addition, I propose to introduce an additional one-off child allowance of $50,000 for each child in the year of birth.


Deduction for Self-education Expenses


66.       To facilitate the development of a knowledge-based economy, the Government has been encouraging employees to seek continual self-advancement through learning.  To this end, I propose to increase the maximum amount of deduction for self-education expenses from $40,000 to $60,000.


67.       The implementation of the foregoing tax concessions for individuals will start in 2007?8, reduce the tax burden of 1.1 million taxpayers and cost the Government about $4.9 billion a year.


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2006 | Important notices

Last revision date : 28 February, 2007