HK Raises Tax for High Earners, First Hike in Two Decades
- Annual income of more than $640,000 to be taxed at 16%
- City is looking at ways to plug the hole in its budget
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Hong Kong will raise the tax on high earners — the first increase in two decades — in a surprise move designed to lower the city’s fiscal deficit.
A two-tier tax system will be introduced from April, with income of up to HK$5 million ($640,000) taxed at a maximum of 15%, and anything higher than that being taxed at 16%. Currently the rate for all individuals is capped at 15%.