By using our website you consent to all cookies in accordance with our Privacy Policy.

Hong Kong budget 2021/22 cover

On Wednesday, 24 February 2021, Financial Secretary Paul Chan Mo-po released the Hong Kong budget initiatives for the fiscal year 2021/22.

Hong Kong has been witnessing a challenging year of 2020 due to the widespread COVID-19 pandemic. This year, the budget plan will put emphasis into large-scale counter-cyclical measures worth over HK$120 billion with proposed tax measures to alleviate the economic adversity and pressure in Hong Kong.

What are proposed tax measures for businesses this year?

The counter-cyclical policies cost more than HK$120 billion in total. Coming to SMEs business support, there will be 100% government guaranteed low-interest loan with a ceiling up to HK$6 million. The repayment period may be extended up to 8 years.

In addition, there are many tax reduction approaches for taxpayers who are separately payable to salaries tax and profits tax.

PROFITS TAX

  • A one-off reduction of profits tax for the year of assessment 2020/21 by 100%, capped at $10,000 per case.
  • Waiver of the business registration fees for 2021/22 (from 1 April 2021 to 31 March 2022). Details can be found here.
  • Rates concession given for non-domestic properties for 4 quarters in 2021/22, capped at $5,000 per quarter in first two quarters, and $2,000 per quarter in the following quarters

SALARY TAX

  • A 100% reduction of salaries tax and tax under personal assessment for the YA 2020/21, with a cap of $10,000 per case.
  • Rates concession given for domestic properties for 4 quarters in 2021/22, subject to a ceiling of $1,500 per quarter in the first two quarters, and a ceiling of $1,000 per quarter in the following two quarters for each rateable property.

STAMP DUTY

A new planned measure in the budget this year is that the rate of ad valorem stamp duty on stock transfers will grow up from 0.1 % to 0.13 % of the consideration or value of each transaction paid by buyers and sellers respectively.

The above tax measures can require legislative amendments for the formal implementation. The tax reduction will only be applicable to the final tax for the year of assessment 2020/21, but not to the provisional tax of the same year.

Please note that tax reduced does not include property tax. But, individuals with rental income (those eligible for personal assessment) may also be qualified for such tax reduction under personal assessment.

For further information on Hong Kong Budget 2021/22, you can visit this page.

Should you have any questions about starting a business in Hong Kong, feel free to drop us a chat message or send us an email via service@bbcincorp.com.

Recent Posts

business-licenses-and-permits
2 Aug 2021

Business Licenses and Permits: What Entrepreneurs Should Know

Obtaining business licenses and permits is the initial step that an entrepreneur must take to ensure legal business operations. So what it is and how to obtain one.

Read more
online-marketplaces-for-ecommerce
30 Jul 2021

Top 7 Best Online Marketplaces for eCommerce in 2021

Looking to find the best selling channel out there for ecommerce? Here is our list of top 7 online marketplaces that will set your business up for growth.

Read more
mauritius-economic-substance-regulations-updates
29 Jul 2021

Mauritius Economic Substance Regulations: Important Updates (2021)

Mauritius has issued Economic Substance rules to reform its tax regime and remove harmful tax practices. Take a look at the key points you should be concerned about.

Read more
starting-fintech-in-singapore
30 Jul 2021

How to Start a Fintech Business in Singapore

The need for digital innovation is stronger than ever as Fintech start-ups are now on the rise. Watch our guide on how to start a fintech business in Singapore and incorporate today.

Read more
warning-fraudulent-skype-account
22 Jul 2021

Warning: Fraudulent Skype Account

We make this notice to inform all of our clients that BBCIncorp has been made a target of malicious spoofing attacks.

Read more
foreign-qualification-doing-out-of-state-business-as-a-delaware-company
26 Jul 2021

Foreign Qualification: Doing Out-of-state Business as A Delaware Company

Foreign qualification opens up growth opportunities for a Delaware company to other states without having to incorporate a new business entity. Learn more!

Read more
delaware-c-corporations-for-venture-capital-fundraising
23 Jul 2021

Delaware C Corporations for Startups Venture Capital Fundraising

For startups who seek Venture Capital funding, incorporating Delaware C-corp might be a good bet for its favorable business characteristics. Here’s the rundown.

Read more
rak-economic-substance-requirements
14 Jul 2021

RAK Economic Substance Requirements: Guide to Effective Compliance

According to RAK economic substance requirements, certain business entities must prove their economic value and report to their regulatory authorities.

Read more
bahamas-economic-substance-requirements
12 Jul 2021

Bahamas Economic Substance: A Look At Requirements & Reporting Guidance

Overview of the Bahamas Economic Substance Regulations that the entrepreneurs should concern: ES Requirements, legislation scope to sanction enactment.

Read more
fatca-reporting-requirements
20 Jul 2021

Understand FATCA Reporting Requirements in 10 Minutes

Certain US taxpayers need to comply with FATCA reporting requirements. They must file and report to the IRS all foreign financial accounts and assets.

Read more
singapore-major-business-trends-in-2021
19 Jul 2021

[INFOGRAPHC] Singapore Major Business Trends in 2021

Singapore has laid out certain business trends for 2021 in major industries. The aim is to retain and further develop the economy in the context of Covid-19.

Read more
economic-substance-regulations-and-requirements
2 Jul 2021

Economic Substance Regulations and Requirements

Economic substance regulations require entities conducting relevant activities to comply with certain requirements. Learn more about how to stay compliant

Read more