Some of the relief measures for business:
Reducing profits tax for the year of assessment 2019/20 by 100 per cent, subject to a ceiling of $20,000. The reduction will be reflected in the final tax payable for the year of assessment 2019/20.
Reducing salaries tax and tax under personal assessment for 2019-20 assessment year by 100%, subject to ceiling of $20,000.
- Waiving rates for non-domestic properties for four quarters of 2020-21, subject to a ceiling of $5,000 per quarter in the first two quarters and a ceiling of $1,500 per quarter in the remaining two quarters for each rateable non-domestic property.
- Non-domestic electricity accounts will enjoy a 75% discount up to a ceiling of HK$5,000 for four months. Likewise, water and sewage costs will be discounted by 75% up to a cap of HK$20,000 and HK$12,500 respectively.
- Tenants of government properties, government land and EcoPark will see rent discounts of 50%. Rent and fees for eligible operators of properties will be slashed by 50%.
- Business registration fees will be waived for 2020-21 (Except payable levy of HKD$250 for 1-year certificate; payable levy of HKD$750 for 3-year certificate).
- Company registry fees for annual returns will be waived for two years.
- Waive stamp duty on stock transfers paid by the Exchange Traded Fund (ETF) market makers when creating and redeeming ETF units in Hong Kong.
- Establish a limited partnership regime and provide tax concession for carried interest issued by private equity funds to attract them to domicile and operate in Hong Kong.
Innovation and Technology
- Increase the grant ceiling under the Technology Voucher Programme from $400,000 to $600,000, raise the Government’s funding ratio from 67% to 75% and the maximum number of approved projects per applicant would be increased from 4 to 6.
- Inject $345 million for a pilot subsidy scheme to encourage the logistics industry to enhance productivity through the application of technology. The maximum grant of each applicant would be $1,000,000 in total for the maximum 4 projects.
- Concessionary low-interest loan: Introduce a concessionary low-interest loan with 100% Government guarantee for enterprises under the SME Financing Guarantee Scheme, which will be open for application for 6 months. Maximum loan of $2 million with repayment period up to 3 years. Moratorium on principal repayment for first 6 months.
- Local recycling enterprises: provide $100 million rental subsidy for 6 months.
*All of the above are coming from the 2020-21 Budget proposal. The relevant legislative amendment is subject to the scrutiny by the Legislative Council.
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