Hong Kong 2021-22 Budget proposals

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 … Discover More

Marbury supports Templewater Bravo’s acquisition of New World First Bus Service and Citybus

Marbury is pleased to support Templewater and Investec Bank plc, as administrator for each of Bowen SP and Templewater I, L.P, and the Project Bravo investment structure for the acquisition of New World First Bus Services Limited (NWFB) and Citybus Limited (Citybus) from NWS Holdings Limited for HKD3.2 billion. Templewater Bravo Holdings Limited (Templewater Bravo) together with its operating partner Ascendal Group Limited, and its investor partner Hans Energy Company Limited lead an international consortium in the acquisition of NWFB and Citybus. NWFB and Citybus have more than 5,000 employees in total, operating around 200 routes with a fleet of more than 1,700 buses and are proud to serve about 1 million passenger trips a day in Hong Kong. They are committed to providing Hong Kong with the best possible bus service. Templewater Bravo is an investment holding company advised, managed and controlled by Templewater I, G.P., which is wholly-owned by Templewater Holdings Limited (Templewater). Templewater is an alternative investment firm founded by Investec Bank plc and Mr. Cliff Zhang. Templewater Bravo will own more than 90% of NWFB and Citybus post acquisition. Cliff Zhang, CEO and Founding Partner of Templewater, expressed his pleasure at the completion of the deal: “We are delighted after the hard work and hurdles overcome to see this deal complete.  We operate in a fast moving and complex environment and we are delighted also to have providers like Marbury who support us across all of our fund management activities on an ongoing basis.” Templewater Managing Partner Mr. Nicolas de Mascarel said of Project Bravo, “The professional management team at NWFB and Citybus has been unwavering in its commitment and service pledge to passengers. We believe … Discover More

Employment Support Scheme (ESS)

The Hong Kong Government has announced the application details for the second payment instalment of its Employment Support Scheme (ESS). Eligible employers may submit their applications for the second tranche wage subsidies from 31 August to 13 September 2020. Employers who have previously applied for the first tranche of the wage subsidies (for wages paid from June to August 2020) must submit a new application (whether the first application was successful or not).

Hong Kong Limited Partnership Fund Ordinance

The Limited Partnership Fund Ordinance (Cap 637) comes into operation on 31 August 2020, providing a rather ground breaking new standalone entity framework for the formation of what has been termed limited partnership funds in Hong Kong.

Hong Kong to increase maternity leave to 14 weeks

Hong Kong’s Legislative Council has recently passed the Employment (Amendment) Bill 2019 (the Bill) which enhances the leave benefits of female employees who are employed under a continuous contract of employment. The key changes are as follows: An increase in the statutory maternity leave entitlement from the existing 10 weeks to 14 weeks. The daily rate of maternity leave pay for the extended four weeks of maternity leave shall be at the rate of four-fifths of the employee’s daily average wages. The maternity leave pay for these four weeks of maternity leave is capped at HKD80,000 per employee.  The Government has committed to reimburse employers payment in respect of the extended period of maternity leave (details are still to be confirmed). The period of pregnancy mentioned in the definition of “miscarriage” will be shortened from 28 weeks to 24 weeks. A female employee who suffers a miscarriage at or after 24 weeks of pregnancy may thus be entitled to maternity leave. A certificate of attendance, as an alternative to a medical certificate, will be accepted as proof of entitlement to sickness allowance for a day on which a female employee attends a medical examination in relation to her pregnancy. The amendments are not yet in force. The Bill is expected to be effected by the end of the year.   Marbury services Marbury offer a comprehensive HR & payroll solution to employers in Hong Kong. Marbury’s professionals help our clients to understand local operating conditions, tax regulations and company and labour laws and then keep them compliant throughout helping to manage all the company’s statutory obligations. Marbury can assist to assess the company’s eligibility for available subsidies and to make the application … Discover More