The Hong Kong finance chief Paul Chan Mo-po has announced the 2025-26 Budget included a series of measures to spur growth.
NOVA, as your reliable business partner, knows it may be a hard time for most of the business, thus we have extracted some of the main key points which may benefit your business as follows.
Support Measures
Rates concession for domestic properties for the first quarter of 2025/26, subject to a $500 ceiling
Rates concession for non-domestic properties for the first quarter of 2025/26, subject to a $500 ceiling
Reduce salaries tax and tax under personal assessment for the assessment year 2024/25 by 100%, subject to a $1,500 ceiling
Reduce profits tax for the assessment year 2024/25 by 100%, subject to a $1,500 ceiling
Small and Medium Enterprises
Inject $1.5 billion into the BUD Fund and the Export Marketing and Trade and Industrial Organisation Support Fund, and streamline application arrangements
SME Financing Guarantee Scheme: principal moratorium application period to last until November 2025
Funds dedicated for SME financing by participating banks of the Taskforce on SME Lending exceed $390 billion
HKTDC to launch the E-Commerce Express to provide Hong Kong enterprises with consultation services, and organise the second edition of the Hong Kong Shopping Festival
Innovation and Technology
Set aside $1 billion to establish the Hong Kong Artificial Intelligence Research and Development Institute to promote the application of research outcomes
Pilot Manufacturing and Production Line Upgrade Support Scheme: $100 million earmarked to provide funding of up to $250,000 on a 1 (government) to 2 (company) matching basis to enterprises. The scheme will launch this year
Review tax-deduction arrangements for purchase of intellectual property usage rights and related transactions
Finance
HKEX will establish a dedicated technology enterprises channel (“TECH”) to help companies prepare for listing applications
Improve vetting process for listing, optimise thresholds for listing, review market structure and more
Propose measures to enhance the “board lot” system and issuance mechanism for structured products and increase position limits for key index derivatives
Formulate proposals on enhancing preferential tax regimes for funds and single family offices
Propose measures to promote gold market development this year
Announce second policy statement on the development of virtual assets and conduct consultation on licensing regimes of virtual asset over-the-counter trading services and custodian services
Explore enhancement measures to the legal and regulatory regime related to issuance and transactions of digital bonds
Implement linkage of faster payment systems between the Mainland and Hong Kong in the middle of the year earliest
Launch public consultation on specific proposals of MPF “Full Portability” this year
Finance
- Propose provision of half-rate tax concessions to eligible commodity traders. Target to introduce a bill into the Legislative Council next year
Contact NOVA for Professional Service
NOVA is a highly professional company that can provide you with expert assistance for your business. Our team of specialists understands the importance of timely and precise reporting, and we are well-equipped to guide you through the process.
Contact us now to ensure that your company meets all obligations and deadlines.
