Major business related measures proposed in 2019-20 Budget

Major business related measures proposed in 2019-20 Budget

In his Budget delivered on 27 February 2019, the Financial Secretary of HKSAR proposed the following major business related measures, all of which require legislative amendments before implementation:

1. Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2018/19

Proposed a one-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2018/19 by 75%, subject to a ceiling of $20,000 per case. The proposed tax reduction is not applicable to property tax. Individuals with rental income, if eligible for personal assessment, may be able to enjoy such reduction under personal assessment.

The proposed tax reduction will only be applicable to the final tax for the year of assessment 2018/19, but not to the provisional tax of the same year. Therefore, taxpayers are still required to pay their provisional tax on time despite the proposed reduction. The provisional tax paid will be applied to pay the final tax for the year of assessment 2018/19 and the provisional tax for the year of assessment 2019/20. Excess balance, if any, will be refunded.

2. Waiving business registration fees for 2019-20

Proposed to waive business registration fees for one year, starting from 1 April 2019.

3. Waiving rates for 2019-20

Proposed to waive rates for 4 quarters of 2019-20, subject to a ceiling of $1,500 per quarter for each rateable property.

4. Regularizing the Technology Voucher Programme

Proposed to regularize the Technology Voucher Programme and double the funding ceiling for enterprises to $400,000.