MAJOR MEASURES PROPOSED IN 2022-23 BUDGET
MAJOR MEASURES PROPOSED IN 2022-23 BUDGET
In his Budget delivered on 23 February 2022, the Financial Secretary of HKSAR proposed the following major measures:
- Electronic consumption vouchers
Issue $10,000 electronic consumption vouchers in instalments to each eligible Hong Kong permanent resident and new arrival aged 18 or above.
- Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2021/22
One-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2021/22 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.
- Introducing a tax deduction for domestic rental expenses
Introduce a tax deduction for eligible domestic rental expenses from the year of assessment 2022/23. Taxpayers liable to salaries tax or tax charged under personal assessment who do not own any domestic property can claim deduction for the rent paid by him/her or his/her spouse as the tenant. The annual ceiling of the deduction is $100,000.
- Waiving business registration fees for 2022/23
To waive business registration fees for one year, starting from 1 April 2022.
- Provide rates concession for 2022/23
Offer rates concession for 4 quarters of 2022/23. 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.
- Concessionary low-interest loan
To extend the application period of 100% guarantee low-interest loan for enterprises to the end of June 2023, raise loan ceiling to $9 million, extending repayment period and duration of principal moratorium.
- Special 100% loan guarantee for individuals
To extend the application period to the end of April 2023, raise loan ceiling to $100,000, extending repayment period to 10 years and principal moratorium to the first 18 months.
- 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.
- Subsidy to electricity charges
To grant a subsidy of $1,000 to each residential electricity account.
- 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.
- Pay examination fees
To pay examination fees for school candidates sitting for 2023 HKDSE Examination.
- 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/2022/eng/speech.html
Should you have any questions on these, please do not hesitate to contact us.
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