Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

February 25, 2022

Hong Kong announces 2022/23 Budget

On 23 February 2022, the Financial Secretary (FS) of Hong Kong announced the 2022/23 Hong Kong Budget (Budget). This Alert summarizes the key features of the Budget.

BEPS 2.0 proposals – implementation in Hong Kong

The FS indicated that a legislative proposal will be submitted in the second half of 2022 to implement the global minimum tax rate and other relevant requirements under the OECD’s1 BEPS2 2.0 project from 2023 in accordance with the international consensus. It will only apply to multinational enterprise (MNE) groups with annual consolidated group revenue exceeding €750 million.

To protect Hong Kong’s taxing rights and minimize the compliance burdens of in-scope MNE groups, the Hong Kong Government will also consider introducing a domestic minimum top-up tax (DMT) in Hong Kong starting from the year of assessment 2024/25 (i.e., financial year ended falling after 31 March 2024). The DMT will bring the jurisdictional effective tax rates of the Hong Kong constituent entities of an in-scope MNE group to the required minimum of 15%.

Meanwhile, the Hong Kong Government reaffirmed its commitment to preserve the simplicity, certainty and transparency of Hong Kong’s tax regime, and to maintain the territorial source principle of taxation.

Proposed tax concessions for family offices set up in Hong Kong

To further enhance Hong Kong’s tax attractiveness as a hub for asset and wealth management, the FS announced that an amendment bill will be introduced to provide tax concessions for qualifying family offices in Hong Kong. It is expected that the relevant tax concessions will come into effect in the year of assessment 2022/23 (i.e., financial year ended falling after 31 March 2022).

Proposed tax measures to enhance Hong Kong’s position as an international maritime center

Currently, Hong Kong has legislation that provides a tax exemption or half-rate tax concession to ship leasing and marine insurance businesses. To further enhance Hong Kong’s position as an international maritime center, the FS announced that similar tax concessions will be introduced in the first half of 2022 to cover other related sectors of the maritime industry, possibly including ship managers, agents and brokers. It is expected that the new tax incentives will require business substance in Hong Kong in accordance with international tax policy standards.


For additional information with respect to this Alert, please contact the following:

Ernst & Young Tax Services Limited, Hong Kong

Ernst & Young LLP (United States), Hong Kong Tax Desk, New York

Ernst & Young LLP (United States), Asia Pacific Business Group, New York

Ernst & Young LLP (United States), Asia Pacific Business Group, Chicago



  1. Organisation for Economic Co-operation and Development.

  2. Base Erosion and Profit Shifting.


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more