8th January 2025 – (Hong Kong) In response to a query from the Honourable Kingsley Wong, the Secretary for Financial Services and the Treasury, Mr Christopher Hui, presented a detailed reply in the Legislative Council today. The discussion centred on the challenges faced by elderly Hong Kong residents seeking to retire in the Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
Mr Wong highlighted that recent government initiatives aimed to support public members working, studying, and retiring in the GBA. However, he raised concerns regarding the Inland Revenue Ordinance (Cap. 112), which currently does not recognise elderly Hong Kong residents living in the Mainland as dependants for the Dependent Parent Allowance, thereby denying taxpayers potential tax relief.
He inquired whether the government would consider expanding the definition of dependants’ ordinary place of residence to encompass the nine Mainland cities in the Greater Bay Area, and if there are plans to relax the location requirements for residential care homes that qualify for tax deductions for the elderly. He also asked for the number of cases in the past three years where taxpayers were denied allowances because their dependants resided in the Mainland, as well as how many Hong Kong residents, particularly those aged 55-59 and 60 or older, have typically stayed in Guangdong Province over the last three years.
In his reply, Mr Hui stated that the government primarily provides welfare support to needy elders within Hong Kong. While various measures have been implemented to facilitate cross-boundary retirement, any changes to tax policies must consider public finance implications and the potential for fraudulent claims.
He confirmed that current eligibility criteria for the Dependent Parent and Dependent Grandparent Allowances require that dependants be ordinarily resident in Hong Kong during the relevant assessment year. Furthermore, the deduction for elderly residential care expenses mandates that the care must be received in a qualifying facility located in Hong Kong.
Regarding the data on taxpayers denied allowances and the number of Hong Kong residents in Guangdong, Mr Hui noted that the Inland Revenue Department does not track these specifics as declarations are only required for those ordinarily resident in Hong Kong.
Statistics from the Census and Statistics Department revealed that as of the end of 2023, approximately 36,000 residents aged 55-59 and nearly 130,000 residents aged 60 and above were usually residing in Guangdong Province.
