By using our website you consent to all cookies in accordance with our Privacy Policy.
Last updated: 4 May 2020

Hong Kong Budget 2020/2021

On Wednesday, 26 February - Financial Secretary Paul Chan Mo-po announced Hong Kong budget initiatives for the 2020/21 fiscal year. This plan is set out in the expectation of riding out the country’s economy downturn caused by Covid-19 epidemic and other challenges, at the same time offer more opportunities for Hong Kong enterprises to deal with the hardship.

The plan highlights a comprehensive picture of Hong Kong’s economy, plus proposals for taxation measures that enterprises should take into account. So, what are the key points to note?

NEW RELIEF MEASURES

  • To carry out counter-cyclical measures of a large scale involving more than HK$120 billion.
  • 100% government guaranteed low-interest loan of up to HK$2 million per case to support SMEs, with repayment period up to 3 years and option to made only interest payments in the first 6 months.

PROFITS TAX

  • A one-off reduction of profits tax for the year of assessment 2019/20 (by 100%), subject to a ceiling of $20,000.
  • Waiver of the business registration fees from 1 April 2020 to 31 March 2021. Click here for detail.
  • Waiver of the registration fees for all annual returns charged by the Companies Registry for two years, other than late delivery.
  • Waiver of the rates for non-domestic properties for 4 quarters of 2020-21 with a cap of $5,000 per quarter in the first two quarters and $1,500 per quarter in the remainings for each rateable non-domestic property.
  • Propose to provide profit tax concessions for ship leasing business and marine insurance business.

SALARY TAX

  • A 100% reduction of salaries tax and tax under personal assessment for the YA 2019/20, subject to a ceiling of $20,000.
  • Waiver of rates with regard to residential properties for 4 quarters of 2020-21, subject to a cap of $1,500 per quarter for each rateable property.

STAMP DUTY

Propose to waive stamp duty on stock transfers paid by the Exchange Traded Fund (ETF) market makers to create and redeem ETF units listed in Hong Kong.

Note that these measures may require legislative amendments before implemented. The proposed tax reduction will only be applicable to the final tax for the YA 2019/20, but not to the provisional tax of the same year.

For further details on Hong Kong budget plan for the 2020-21, read HERE.

Should you have any concerns regarding setting up a business in Hong Kong, do not hesitate to drop us a chat message or send email via service@bbcincorp.com.


Recent Posts

opening-bank-account-covid-19-sharing-by-rachel-ng-bbcincorp
3 Jul 2020

Opening Bank Account During Covid-19 & Sharing By Rachel Ng From BBCIncorp

Open an Offshore Business Account Remotely, specifically in financial centers like Hong Kong and Singapore during Covid-19 Period, is it possible? Get the answer with Rachel Ng from BBCIncorp

Read more
dbs-hong-kong-now-supports-remote-bank-account-opening
27 May 2020

DBS Hong Kong now supports remote bank account opening

DBS Hong Kong now caters the need of business owners who cannot afford a trip to Hong Kong for registering a business account by way of temporarily suspending requirement to visit Hong Kong.

Read more
seychelles-announced-beneficial-ownership-act
22 May 2020

Seychelles announced Beneficial Ownership Act, 2020

On 5th March 2020, Seychelles passed two new laws of Beneficial ownership Act 2020 (BOA) and AML/CFT Act 2020 in replacement of AML Act, 2006.

Read more
recent-key-changes-in-belize-tax-law-on-ibcs
22 May 2020

Recent key changes in Belize tax law on IBCs

Belize has undergone significant changes to its tax treatment for an IBC. Namely, there were two tranches of amendment into its Tax Act in 2018 and 2019.

Read more
revised-incorporation-annual-fee-of-seychelles-ibcs
14 May 2020

Revised Incorporation & Annual Fee of Seychelles IBCs From 1st April 2020

Fees payable for the incorporation and annual renewal of all Seychelles International Business Companies (IBCs) effective from 1st April 2020 would be increased. See details!

Read more
hong-kong-the-2018-19-tax-payment-deadlines-extended
21 Apr 2020

Hong Kong: The 2018/19 Tax Payment Deadlines Extended For Three Months

IRD announced on the automatic three-month extension for the payment deadline of Salaries Tax, Tax under Personal Assessment and Profits Tax for the YOA 2018/19

Read more
bbcincorp-limited-received-ocbc-valued-partner-award-2019-2020
30 Mar 2020

BBCIncorp Limited received OCBC Valued Partner Award 2019/2020

BBCIncorp Limited was honored to announce its award "OCBC Valued Partner Award 2019/2020”. It is highlighted that this has been the 5th year that BBCIncorp received this honor.

Read more
delivery-service-temporarily-suspended-due-to-covid-19-pandemic
26 Mar 2020

Delivery Service Temporarily Suspended Due To COVID-19 Pandemic

Due to the severe impact of the coronavirus pandemic (COVID-19), BBCIncorp Limited regrets to announce the temporary suspension of delivery services by courier companies

Read more
ocbc-singapore-introduced-multi-currency-account-for-business
20 Mar 2020

OCBC Singapore Introduced Multi-Currency Account For Business

OCBC Singapore introduced its first product in the category of Multi-Currency Business Account, which can greatly benefit all local and foreign companies to grow their business internationally.

Read more
open-bank-account-online-with-dbs-and-ocbc
13 Mar 2020

Exclusive Offer: Open Bank Account Online With DBS & OCBC

In response to Coronavirus Outbreak (COVID-19), two of our largest partners – DBS and OCBC banks are now offering favorable approaches to support BBCIncorp’s clients and customers.

Read more