On Wednesday, Hong Kong Financial Secretary Paul Chan delivered the annual budget for the 2021/22 fiscal year in the Legislative Council. The budget will be effective from April with a series of preferential measures, let’s check the details!
△ HK Financial Secretary Paul Chan delivers the budget on Wed.
Hong Kong Financial Secretary Paul Chan on Wednesday unveiled the HK annual budget with measures to strengthen Hong Kong’s economy and relieving people’s burden.
According to Chan, this year’s Budget aims to alleviate the hardship and pressure caused by the economic downturn and the epidemic through the focuses on stabilizing the economy through the introduction of counter-cyclical measures costing over HK$120 billion.
In order to overcome the epidemic, the government will implement a series of measures to support enterprises, safeguard jobs and relieve people’s burden. We will share the info of part of the proposed measures. You can also clike the “read more” to get the full document of the Budget Speech.
△ Total government revenue & expenditure for the 2021-22 fiscal year.
Enhance financing guarantee scheme
Extend the application period of 100% guarantee low-interest loan for enterprises to the end of this year, raise loan ceiling to HK$6 million, extend repayment period and duration of principal moratorium.
Reduce profits tax for 2020-21 assessment year by 100%, subject to a HK$10,000 ceiling. The reduction will be reflected in the final tax payable for the year of assessment 2021/21. This will benefit 128, 000 businesses.
Waive business registration fees
Waive the business registration fees for 2021-22. This will benefit 1.5 million business operators and reduce government revenue by HK$3 billion.
Grant rental/fee concession for certain properties
Continue to grant 75% rental or fee concession for eligible government properties/short-term tenancies and waivers for 6 months (100% concession for those closed at the Government’s request).
Issue electronic consumption vouchers
Issue HK$5,000 electronic consumption vouchers in instalments to each eligible Hong Kong permanent resident and new arrival aged 18 or above to facilitate and stimulate local consumption.
Develop smart ID platform for enterprises
Develop the business version of the “iAM Smart” digital authentication platform.
Provide electronic submission means for most government forms and licence applications by mid-2022.
Provide e-payment options
Provide e-payment options (including Faster Payment System) for making payments of most government bills and licences starting from mid-2022.
Improve cargo handling capacity
With the expansion of the existing express air cargo terminal, the commissioning of a new premium logistics centre and the Three Runway System, annual cargo handling capacity of Hong Kong International Airport (HKIA) is expected to increase to some 9 million tonnes in 2024.
Explore facilitations for trans-shipment
Explore measures to facilitate trans-shipment through Hong Kong, so as to maintain Hong Kong’s competitive edge as an international air cargo hub.
Redevelop the Air Mail Centre
Redevelop the Air Mail Centre at HKIA with a view to bringing the centre operation by end 2027 at the earliest.
We will keep following the updates on the latest preferential measures and policies for foreign-trade-related companies. Stay tuned!
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SOURCE | HK Gov / Reuters / China Daily