Hong Kong 2020-21 Budget proposal highlights for HK Companies

Hong Kong’s Financial Secretary, Paul Chan, outlined his budget for 2020-21 in his Budget Address on 26 February 2020. Following the HKD30 billion coronavirus relief package two weeks ago by Hong Kong Chief Executive, Carrie Lam, Chan’s budget offers additional relief with generous measures for businesses.

The budget includes the concessionary measures, all of which require legislative amendments before implementation. Highlights of the measures of particular interest to Hong Kong companies are set out below.

– Waiving business registration fees for 2020-21

It is proposed that the business registration (BR) fees for the period 1 April 2020 to 31 March 2021 will be waived, and only the BR Levy will be charged.

As such, the total BR fee for a 1-year certificate will be HKD250 (USD32) for this period, instead of HKD2,250 (USD287).

– Waiving registration fees for company annual returns for 2 years

It is proposed to waive the registration fees for all annual returns (except for late filing) charged by the Companies Registry for two years.

 

Marbury clients who have already been billed for their BR fee and government fee for the registration of the Annual Return for the coming financial year will receive a reduced invoice to account for the fee waiver in their next billing cycle. Whereas our clients who are incorporating in the coming financial year will be charged according to the proposed fee waiver.

 

For more information on any aspect of this briefing please contact any member of the Marbury team.