A bill to implement the one-off tax concessions and two-tiered standard rates regime as proposed in the 2024-25 Budget will be gazetted on March 8 and introduced into the Legislative Council on March 20.

The Budget has proposed one-off reductions of salaries tax, tax under personal assessment and profits tax for the 2023-24 year of assessment by 100%, subject to a $3,000 ceiling per case. The reductions will be reflected in taxpayers' final tax payable for that year of assessment.

The proposals will benefit 2.06 million taxpayers chargeable to salaries tax and tax under personal assessment as well as 160,000 tax-paying businesses. The government revenue forgone in 2024-25 is estimated to be about $5.531 billion.

The Budget also proposed a two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the 2024-25 year of assessment.

In calculating the tax amount for taxpayers whose net income exceeds $5 million and whose salaries tax or tax under personal assessment is to be charged at a standard rate, the first $5 million of their net income will continue to be subject to the standard rate of 15%, while the portion of their net income exceeding $5 million will be subject to the standard rate of 16%.