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MAJOR MEASURES PROPOSED IN 2021-22 BUDGET

 

MAJOR MEASURES PROPOSED IN 2021-22 BUDGET

In his Budget delivered on 24 February 2021, the Financial Secretary of HKSAR proposed the following major measures:

  1. Electronic consumption vouchers

Issue $5,000 electronic consumption vouchers in instalments to each eligible Hong Kong permanent resident and new arrival aged 18 or above.

  1. Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2020/21

One-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2020/21 by 100%, subject to a ceiling of $10,000 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 2021/22

To waive business registration fees for one year, starting from 1 April 2021.

  1. Increasing the rate of ad valorem stamp duty chargeable on transactions of Hong Kong stock

To increase the rate of ad valorem stamp duty from 0.1% to 0.13% of the consideration or value of each transaction of Hong Kong stock payable by buyers and sellers respectively.  Subject to the completion of the legislative process, the measure will take effect from the date specified in the amendment ordinance.

  1. Provide rates concession for 2021/22

Offer rates concession for 4 quarters of 2021/22.  For each domestic property, the concession ceiling is $1,500 per quarter in first two quarters and $1,000 per quarter in remaining two quarters.  For each non-domestic property, the concession ceiling per quarter in first two quarters is $5,000 and $2,000 per quarter for remaining two quarters.

  1. Concessionary low-interest loan

To extend the application period of 100% guarantee low-interest loan for enterprises to the end of this year, raise loan ceiling to $6 million, extending repayment period and duration of principal moratorium.

  1. Set up a special 100% loan guarantee for individuals

Government will provide a special 100% loan guarantee for unemployed individuals.  The loan ceiling of $80,000 with interest rate fixed at 1% per annum and the maximum repayment period is 5 years. Principal moratorium for the first 12 months and offer reimbursement for interest paid after loans are repaid in full as scheduled.

  1. Waiving water and sewage charges

Waiving 75% of water and sewage charges of non-residential households for 8 months, subject to a monthly cap of $20,000 and $12,500 respectively.

  1. Subsidy to electricity charges

To grant a subsidy of $1,000 to each residential electricity account.

  1. Pay extra half month of allowances

Offer to pay extra half month allowance of standard CSSA payment, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to Working Family Allowance and Individual-based Work Incentive Transport Subsidy.

  1. Pay examination fees

To pay examination fees for school candidates sitting for 2022 HKDSE Examination.

  1. Rental reduction

To grant 75% rental or fee concession for eligible Government properties or short-term tenancies and waivers for 6 months (100% concession for those closed at the Government’s request).

For details, please refer to the follow official link:

https://www.budget.gov.hk/2021/eng/speech.html

Should you have any questions on these, please do not hesitate to contact us.

 


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