The effective exchange rate index for the Hong Kong dollar on Wednesday, March 27, 2024 is 105.7 (up 0.2 against yesterday's index).

     The effective exchange rate index for the Hong Kong dollar on Wednesday, March 27, 2024 is 105.7 (up 0.2 against yesterday's index).

     The Government announced today (March 27) that the Chief Executive has reappointed Ms Zabrina Lau Shing-yan as a member of the Standing Committee on Directorate Salaries and Conditions of Service (the Directorate Committee) for a term of two years from April 1, 2024, to March 31, 2026. 
 
     The Directorate Committee tenders advice to the Chief Executive on matters relating to the structure, pay and conditions of service of directorate ranks in the civil service. It is chaired by Mrs Ann Kung Yeung Yun-chi. Other serving members are Mr Jack Chan Hoi, Ms Margaret Cheng Wai-ching, Mr Kevin Lam Sze-cay and Ms Jacqueline Ng Wai-kwan.

     â€‹The Government reminded members of the public today (March 27) that tax deduction for expenses on assisted reproductive (AR) services under salaries tax and personal assessment is planned for introduction starting from the year of assessment 2024/25. If members of the public pay for expenses on assisted reproductive services on or after April 1 this year and intend to claim tax deductions for such expenses upon implementation of the proposed tax deduction scheme, they should keep relevant documents including receipts as proof.

     To encourage couples to give birth during their prime reproductive years, the Government proposed in the 2023 Policy Address the introduction of a tax deduction for expenses on AR services starting from the year of assessment 2024/25, with the ceiling of deductible expenses capped at $100,000 for eligible persons for each year of assessment. To benefit from the tax deduction, taxpayers must be couples who are infertile or receive reproductive technology (RT) procedures under specified medical needs, or cancer patients or any other patients who may be rendered infertile as a result of chemotherapy, radiotherapy, surgery, or other medical treatment. 
       
     Taxpayers who freeze gametes for reasons other than medical needs may delay their childbearing plans. Such decision is contrary to the Government's policy of encouraging the public to have children as early as possible. Therefore, taxpayers will not be able to claim the proposed tax deduction for the receipt of such services.

     The scope of expenses eligible for the proposed tax deduction scheme is limited to the necessary expenses paid by taxpayers for RT procedures at centres holding accredited licences in Hong Kong. The accredited licences refer to an artificial insemination by husband (AIH) licence, a treatment licence or a storage licence issued by the Council on Human Reproductive Technology (CHRT). The CHRT updates and publishes the list of licensed centres regularly on its website (www.chrt.org.hk) for public reference. In addition, taxpayers can only claim tax deductions in the year of assessment during which such expenses are paid. Reimbursed expenses (e.g. expenses reimbursed by insurance companies, medical reimbursements under civil service medical benefits, etc) are not tax deductible. 

     To facilitate taxpayers' claims for tax deductions in the future upon the implementation of the proposed tax deduction, the Government will prepare a standard form of Proof of Qualifying Expenses Paid for Assisted Reproductive Services (the Proof). A taxpayer, at the time of getting the payment receipt, may then request an accredited specialist or the person responsible of the licensed centre to issue and sign the Proof to certify the eligibility of the taxpayer for the tax deduction and that the relevant expenses are necessary for undergoing RT procedures. The Proof must show the amount and date of expenses paid by the taxpayer.

     As for taxpayers who are going to pay necessary expenses for RT procedures on or after April 1 this year, they can also present the relevant receipts to obtain the Proof retrospectively from the licensed centre that provided the services as evidence for the tax deduction.

     Where necessary, the Inland Revenue Department will request the taxpayers to submit the Proof as evidence for the tax deduction. Taxpayers should therefore keep the Proof for six years counting from the end of the relevant assessment year.

     The Government plans to introduce an amendment bill for the Inland Revenue Ordinance (Cap. 112) into the Legislative Council within this year to implement the tax deduction.

The following is issued on behalf of the Hong Kong Housing Authority:
 
     The Hong Kong Housing Authority (HA) will pass on the rates concession for the first quarter of 2024-25, as set out in the Budget Speech of the Financial Secretary in February this year, to its domestic and non-domestic tenants, starting from April 2024. 
 
     "Following approval by the Subsidised Housing Committee of the HA, the apportioned amount of rates concession will be passed on to domestic tenants on a monthly basis over a three-month period from April 1, 2024, to June 30, 2024, by offsetting an equivalent amount of the monthly rent payable by them, subject to a ceiling of $1,000 for each rateable property," a spokesman for the HA said today (March 27). For tenancies that do not cover the entire month, the transfer of the rates concession will be made on a pro-rata basis.
 
     "The rates concession passing-on arrangement will apply to all domestic lettings including interim housing licensees," the spokesman said.
 
     "Similarly, the Commercial Properties Committee (CPC) of the HA approved that the rates concession for the first quarter of 2024-25 for the HA's non-domestic properties (excluding car parks) will also be passed on to the non-domestic tenants/licensees on a 'no loss, no gain' principle. Their monthly rates from April to June 2024 will be waived subject to a ceiling of $1,000 for each rateable non-domestic property," the spokesman said.
 
     Also, for the HA's 18 single-operator markets, namely Ching Long, Choi Fook, Chun Yeung, Hoi Tat, Hung Fuk, Kwai Chung, Lei Muk Shue, Mun Tung, On Tai, Pak Tin, Queens Hill, Shek Mun, Shui Chuen O, Tin Yan, Yan Tin, Ying Tung, Kai Chuen and Ping Yan, the operators will also pass on the rates concession to their licensees in full.
 
     "Given the small amount of rates concession to individual car park users and the significant administrative costs involved for its distribution to these users, the CPC endorsed the exclusion of car parks from this exercise in line with the arrangements for passing on the rates concession in previous exercises. The rates concession for car parks received by the HA will be invested in enhancing the HA's car park facilities, such as installation of electric vehicle charging facilities at suitable sites, replacement of energy-efficient lighting to promote environmental protection and upgrading of security systems," the spokesman said. 
  
     The maximum total amount of rates concession to be passed on to domestic and non-domestic tenants/licensees by the HA is estimated to be about $590 million and $8.4 million respectively. They will be individually notified of the detailed arrangements by the Housing Department.