Hong Kong Budget 2026–27: Key business measures and what they mean for corporates 

Hong Kong’s Financial Secretary, Paul Chan, delivered the 2026–27 Budget on 25 February 2026, setting out a fiscal roadmap that signals the city’s return to surplus while reaffirming its ambition to remain a leading international business and financial centre. 

The Budget combines short‑term relief for businesses with a series of targeted, forward‑looking initiatives aimed at enhancing competitiveness, attracting capital and accelerating innovation‑led growth. For corporates operating in, or considering entry into, the Hong Kong market, the Budget sets out a series of business‑relevant measures with both immediate and longer‑term strategic implications. 

Key business measures in the Hong Kong Budget 2026–27 

Fiscal context 

The 2026–27 Budget is delivered against a backdrop of improving public finances, with the government confirming that both the Operating Account and the Consolidated Account have returned to surplus earlier than previously forecast, following several years of pandemic‑related deficits and counter‑cyclical support. This improved position provides policymakers with greater flexibility to offer targeted relief and invest in priority growth areas, while maintaining Hong Kong’s long‑standing commitment to prudent fiscal management. For businesses, the return to surplus underpins the sustainability of the measures announced and reinforces confidence in the stability of Hong Kong’s low‑tax, business‑friendly environment.  

Impact of the Hong Kong Budget on businesses  

Set out below are the principal measures of relevance to businesses, together with an assessment of their practical implications for corporates. 

1. One‑off Profits Tax Reduction for Businesses 

A headline measure of this year’s Budget is a one‑off 100% reduction in profits tax for the year of assessment 2025/26, subject to a cap of HK$3,000 per business. Approximately 171,000 businesses are expected to benefit from the concession.  

While the absolute saving is modest, particularly for larger corporates, the measure provides immediate cash‑flow relief for small and medium‑sized enterprises and forms part of a broader effort to stabilise business sentiment amid ongoing global economic uncertainty. 

2. Rates Concessions for Non‑Domestic Properties 

To further support the commercial sector, the government announced rates concessions for non‑domestic properties for the first two quarters of the 2026/27 financial year, capped at HK$500 per quarter per property.  

With occupancy costs remaining a significant overhead for many businesses in Hong Kong, even limited relief is likely to be welcomed. For organisations with multiple commercial premises, the cumulative benefit may be more meaningful. 

3. Tax relief and incentives in the Hong Kong Budget 2026–27 

Taken together, the Budget’s tax measures combine modest short‑term relief with targeted incentives aimed at strengthening Hong Kong’s appeal as a base for funds, treasury operations and internationally mobile capital. 

4. Expanded Tax Incentives for Funds and Family Offices 

In a move designed to strengthen Hong Kong’s position as a global asset and wealth management hub, the Budget expands the scope of qualifying investments eligible for tax concessions under the enhanced fund tax regime. 

Digital assets, precious metals and certain commodities are now recognised as qualifying investments, aligning Hong Kong’s framework more closely with evolving global investment practices and reinforcing its competitiveness against other international financial centres. 

5. Enhanced Incentives for Corporate Treasury Centres 

Corporate Treasury Centres (CTCs) continue to feature prominently in Hong Kong’s strategy to attract multinational groups. The Budget confirms additional tax incentives and greater operational flexibility for CTCs, alongside plans to introduce a new pre‑approval mechanism by mid‑2026.  

The proposed framework is intended to simplify compliance and provide greater certainty for groups establishing or expanding treasury operations in Hong Kong. 

6. Preferential Tax Packages for Targeted Enterprises 

Reflecting a more targeted approach to economic development, the government will introduce preferential policy packages aimed at attracting enterprises operating in strategic sectors. These may include half‑rate profits tax arrangements (5%), land grant incentives and direct financial subsidies.  

Rather than broad‑based concessions, the focus is on attracting high‑value businesses in innovation, advanced manufacturing and technology. 

7. Support for the Maritime and Commodities Trading Sectors 

The Budget introduces enhancements to existing maritime tax concessions and extends a half‑rate profits tax concession to eligible commodities traders.  

These measures are intended to reinforce Hong Kong’s position as a leading international maritime, logistics and trading hub amid increasing regional competition. 

Government Investment in Innovation and Technology 

Beyond tax measures, the government has committed additional funding to strengthen Hong Kong’s innovation ecosystem: 

• HK$50 million to enhance artificial intelligence literacy and skills training through collaboration between technology companies and educational institutions 
• HK$100 million to accelerate government digital transformation initiatives, creating opportunities for technology partners and solution providers 

These initiatives support Hong Kong’s ambition to position itself as a regional leader in AI and digital innovation.  

A Measured, Business‑Focused Budget 

The Hong Kong Budget 2026–27 reflects a calibrated approach, pairing limited near‑term relief with targeted structural measures designed to reinforce the city’s competitiveness as a regional business and financial centre. Immediate tax and rates relief provide a degree of operating stability, while targeted incentives and investment initiatives are designed to enhance competitiveness, attract international capital and support sustainable growth. 

For corporates, the key considerations are clear: 

• Short‑term relief measures offer limited but welcome cost support 
• Enhanced incentives for funds, treasury centres and selected sectors strengthen Hong Kong’s appeal as a regional headquarters and investment base 
• Increased investment in innovation and digital capability creates new growth and partnership opportunities 

Businesses should assess how these measures interact with their existing structures, review tax and treasury strategies for the years ahead, and consider whether newly introduced incentives could support expansion, restructuring or efficiency objectives. 

If you have any questions on the Hong Kong Budget 2026–27 or would like to explore how Equiom can support you, please contact our team. 

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained within this article without obtaining specific professional advice. Please contact Equiom Group to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.