Hong Kong proposed major measures in its 2020-21 budget.
On 26 February, the Financial Secretary, Paul Chan Mo-po, unveiled the following major measures in the 2020/21 Hong Kong budget:
- Cash payout
Proposed a HK$10,000 cash payout to Hong Kong permanent residents aged 18 or above.
- Reducing profits tax, salaries tax and tax under personal assessment for the year of assessment 2019/20
Proposed a one-off reduction of profits tax, salaries tax and tax under personal assessment for the year of assessment 2019/20 by 100%, subject to a ceiling of HK$20,000 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.
- Waiving business registration fees for 2020-21
Proposed to waive business registration fees for one year, starting from 1 April 2020.
- Waiving registration fees for company annual returns
Proposed to waive the registration fees for company annual returns for 2 years, starting from 1 April 2020.
- Waiving rates for 2020-21
Proposed to waive rates for 4 quarters of 2020-21. For each domestic property, the waiver ceiling is HK$1,500 per quarter. For each non-domestic property, the waiver ceiling per quarter in first two quarters is HK$5,000 and HK$1,500 per quarter for remaining two quarters.
- Concessionary low-interest loan
Proposed to introduce a concessionary low-interest loan with 100% Government guarantee for enterprises. Maximum loan of HK$2 million with repayment period up to 3 years. Moratorium on principal repayment for first 6 months.
- Waiving water and sewage charges
Proposed to waive 75% of water and sewage charges of non-residential households for 4 extra months, subject to a monthly cap of HK$20,000 and HK$12,500 respectively.
- Subsidy to electricity charges
Proposed to subsidize 75% of the electricity charges for non-residential account for 4 extra months, subject to a monthly cap of HK$5,000.
- Pay extra one month of allowances
Propose to pay extra one month allowance of standard CSSA payment, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to Work Incentive Transport Subsidy.
- Rental subsidy
Proposed to pay 1 month’s rent for lower income tenants living in public rental units.
- Examination fees waiver
Proposed to waive examination fees for candidates sitting 2021 HKDSE Examination.
- Rental reduction or provide rental subsidy
Proposed to provide $100 million rental subsidy to local recycling enterprises for 6 months. Proposed to reduce 50% of the rental for Government properties or hire charges for civic centres under Leisure and Cultural Services Department for 6 months. Waive the fees and rent for cruise lines and cruise terminal tenants for 6 months.
For detailed information of the Hong Kong Budget 2020/21, please visit: https://www.budget.gov.hk/2020/eng/speech.html