Hong Kong authorities dismiss proposal to split child tax allowances
Government cites limited benefits to taxpayers and increased administrative burden in rejecting lawmaker’s pleas
Hong Kong authorities have rejected proposals to allow parents to split child tax allowances, citing concerns about administrative efficiency and the limited benefit to taxpayers.
During a Legislative Council meeting on Wednesday, lawmaker Nixie Lam Lam suggested amending the law to introduce a default allocation mechanism for child allowances, such as according to income ratios, letting parents share the amount or claim it separately to reduce conflicts.
“When it comes to supporting elderly parents, the government recognises the joint effort of children, but it now denies the joint effort of both parents in raising children,” Lam said.
“Does the government have any plans to fix the double standard in the taxation system? It’s not about catering to the needs of all families but allowing more flexibility.”
Under the Inland Revenue Ordinance, a taxpayer can claim child allowances for up to nine children. For the 2023-24 assessment year, the allowance for each child was HK$130,000 (US$16,560).
Currently, these allowances must be claimed altogether by one parent, unless they are living apart. Parents are expected to jointly decide who claims all the child allowances.
Only divorced or separated parents are permitted to have the child allowance apportioned, a measure intended to reduce their compliance burden and enhance tax assessment efficiency.