The 2021-2022 Financial budget was just released by the Financial Secretary, Chan Mo-Po yesterday. With the COVID-19 pandemic of 2020 still running rampant, everyone is looking to see what the HK Government is doing to help the economy to bounce back. Here is a brief overview of how this year’s budget may affect your business.
- The application period of 100% guarantee low-interest loan for enterprises extended to the end of this year:
- Further increasing the maximum loan amount per enterprise from the total amount of employee wages and rents for 12 months to that for 18 months
- Raising the loan ceiling from HK$5 million to HK$6 million
- Extending repayment period and duration of principal moratorium from 12 months to 18 months
- Extending the maximum repayment period from five years to eight years
- Another HK$1.5 billion raised into “Dedicated Fund on Branding, Upgrading and Domestics Sales” (the BUD Fund). The maximum subsidy will be increased to HK$6,000,000 to each Hong Kong company
- Profits tax for 2020-21 assessment year reduced by 100%, subject to a $10,000 ceiling for each business
- The Business Registration Fees waived for 2021‑22
- Reducing by a sum of $2,000 if the related incorporation submissions are made within the period from 1 April 2021 to 31 March 2022 and the levy will be remained at HK$250 within the period
- Developing the business version of the “iAM Smart” digital authentication platform
- Providing electronic submission means for most government forms and licence applications by mid-2022
- Providing e-payment options (including Faster Payment System) for making payments of most government bills and licences starting from mid-2022
All of the above are coming from the 2021-22 Budget proposal. The relevant legislative amendment is subject to the scrutiny by the Legislative Council.
