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MAJOR MEASURES PROPOSED IN 2020-21 BUDGET – HONG KONG

In his Budget delivered on 26 February 2020, the Financial Secretary of HKSAR proposed the following major measures:

  1. Cash payout

Proposed a $10,000 cash payout to Hong Kong permanent residents aged 18 or above.

  1. Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2019/20

Proposed a one-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2019/20 by 100%, 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.

  1. Waiving business registration fees for 2020-21

Proposed to waive business registration fees for one year, starting from 1 April 2020.

  1. Waiving registration fees for company annual returns

Proposed to waive the registration fees for company annual returns for 2 years, starting from 1 April 2020.

  1. Waiving rates for 2020-21

Proposed to waive rates for 4 quarters of 2020-21.  For each domestic property, the waiver ceiling is $1,500 per quarter.  For each non-domestic property, the waiver ceiling per quarter in first two quarters is $5,000 and $1,500 per quarter for remaining two quarters.

  1. Concessionary low-interest loan

Proposed to introduce a concessionary low-interest loan with 100% Government guarantee for enterprises. Maximum loan of $2 million with repayment period up to 3 years.  Moratorium on principal repayment for first 6 months.

  1. Waiving water and sewage charges

Proposed to waive 75% of water and sewage charges of non-residential households for 4 extra months, subject to a monthly cap of $20,000 and $12,500 respectively.

  1. Subsidy to electricity charges

Proposed to subsidize 75% of the electricity charges for non-residential account for 4 extra months, subject to a monthly cap of $5,000.

  1. Pay extra one month of allowances

Propose to pay extra one month allowance of standard CSSA payment, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to Work Incentive Transport Subsidy.

  1. Rental subsidy

Proposed to pay 1 month’s rent for lower income tenants living in public rental units

  1. Examination fees waiver

Proposed to waive examination fees for candidates sitting 2021 HKDSE Examination

  1. Rental reduction or provide rental subsidy

Proposed to provide $100 million rental subsidy to local recycling enterprises for 6 months.  Proposed to reduce 50% of the rental for Government properties or hire charges for civic centres under Leisure and Cultural Services Department for 6 months.  Waive the fees and rent for cruise lines and cruise terminal tenants for 6 months.

For details, please refer to the official link.Should you have any questions on these, please do not hesitate to contact us.

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