Hong Kong’s Financial Secretary, Paul Chan, outlined his budget for 2020-21 in the Budget Address on 24 February 2021. Acknowledging a record high deficit and another difficult year ahead the budget proposals focus on stabilising the economy and relieving people’s burden.
The Financial Secretary outlined measures to support enterprises, and revive and stimulate the economy, as well as regarding tax policy. Highlights of the measures of particular interest to Hong Kong companies and our clients operating in Hong Kong are set out below.
· Waiving business registration fees for 2021-22
It is proposed again that the business registration (BR) fees for the period 1 April 2021 to 31 March 2022 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 HKD2250 (USD287). The IRD will announce the refund arrangement after the relevant legislative amendment is passed by the Legislative Council.
Marbury clients who have already been billed for their BR fee 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.
Hong Kong companies continue to benefit from the waiver of registration fees for company Annual Returns as announced in last year’s budget.
Watch this space:
· Tax Policy
The Financial Secretary confirmed that Hong Kong will actively implement the BEPS 2.0 proposals, relating to global minimum taxation, whilst seeking to minimise the impact on local SMEs and Hong Kong’s simple tax regime, and its attractiveness to multinational corporations to invest and operate in Hong Kong.
More information can be found at the official website of the budget proposal.