Empowering the economy for sustainable growth

2025/26 Hong Kong Budget

Insight
26 Feb 2025

Financial Secretary Paul Chan Mo-po delivered the 2025/26 Hong Kong Budget on 26 February 2025 under the theme 'Accelerating Development through Reform and Innovation'. The Budget comprises a comprehensive array of policies and initiatives designated to stimulate economic growth and enhance Hong Kong's competitiveness, laying the foundation for continuous development and achieving fiscal sustainability.

Summary Budget at a glance

Estimated consolidated deficit of HKD87.2 billion for 2024/25 and forecast consolidated deficit HKD67 billion for 2025/26

Raise to HKD4 million the maximum value of properties chargeable to a stamp duty of HKD100 with immediate effect

Review tax-deduction arrangements in relation to the acquisition of intellectual property rights

Clarify regulatory requirements to enable private equity fund listings and improve the trading mechanism for T+1 settlement cycle compatibility

Propose half-rate tax concessions to eligible commodity traders and enhance the existing ship leasing tax regime

Proactively invite top talent to Hong Kong and enhance the talent scheme to include young non-degree professionals with technical qualifications and experience

Support Hong Kong's AI innovation and application by allocating HKD1 billion to establish the Hong Kong AI Research and Development Institute

Announce Low-altitude Economy Regulatory Sandbox results and consider dedicated legislation for various types of Advanced Air Mobility

Launch the two-year Manufacturing+ Scheme, a total of HKD100 million earmarked to support the upgrade of production lines in Hong Kong

Develop Hong Kong Park in Hetao Co-operation Zone with HKD3.7 billion earmarked to expedite Phase 1 infrastructure and public facilities, and identify suitable land parcels for private development proposals

Launch a HKD300 million subsidy scheme in mid-year to provide impetus for the industry to install 3,000 fast chargers across Hong Kong by 2030 to be used by 160 000 additional electric vehicles

Transform InnoCentre in Kowloon Tong to become GreenTech Hub, housing over 200 green technology companies

Viewpoints PwC’s response to the Budget

Viewpoints from tax leaders

Hear the viewpoints of our tax leaders on what stood out for them in this year's Budget and what it means for businesses.

Our tax analysis

Viewpoints from industry leaders

Check out viewpoints from our industry leaders on technology, digitalisation, infrastructure development and sustainability.

Our industries insights >

Measures Budget highlights

This highlight includes profits tax, salaries tax, stamp duty, proposed one-off measures and other key proposals.

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Practical guide 2025/26 Tax facts and figures

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^{The information in this booklet is based on taxation laws and practices as of 26 February 2025 and incorporates legislative proposals and measures contained in the 2025/26 Hong Kong Budget announced on the same date.

Note: Legislative proposals do not become law until their enactment and may be modified by the Legislative Council before being enacted.}