SNAPSHOTS OF HONG KONG BUDGET 2021/2022
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
雅德
Audit • Tax • Advisory
SNAPSHOTS OF
HONG KONG
BUDGET
2021/2022
www. acutus - ca. co mOn 24 February 2021, Hong Kong’s 2021/2022 Budget was delivered by Mr. Paul Chan, the
Financial Secretary of the Hong Kong Special Administrative Region.
Set against the back drop of a second year of economic contraction caused by the impacts of
China-US tension, local social incidents and the COVID-19 pandemic, Hong Kong is faced
with a lackluster economy and a deteriorated labour market. A record deficit of HK$257.6
billion for the fiscal year 2020/2021 was announced and this is indeed the largest deficit in 20
years. He further warned that Hong Kong is expected to suffer annual deficit over the next
few years due to the rising cost in recurring expenses and the one-off anti pandemic measures.
The Financial Secretary’s 2021-2022 Budget outlined the Government’s plans for the
economy and proposals to support healthcare, enterprises, safeguarding jobs and
strengthening livelihood, paving ways for a post pandemic economic recovery.
Similar to last year, there are no new tax measures introduced.
At Acutus Hong Kong, we are pleased to summarise herein the 2021-2022 Budget’s key
highlights relating to salaries tax, profits tax, measures to smoothen livelihoods, support
enterprises and achieve diversified economy, as follows:
SMOOTHEN LIVELIHOODS
HK$5,000 electronic consumption vouchers in instalments to Hong Kong permanent
residents and new arrivals aged 18 or above;
Salaries Tax and tax under personal assessment for 2020-2021 will be reduced by
100%, subject to a ceiling of HK$10,000 (2019-2020: HK$20,000). The reduction
will be reflected in the final tax payable for the year of assessment 2020-2021;
The rate of Stamp Duty on Stock Transfers will be raised from the current 0.1% to
0.13% of the consideration or value of each transaction payable by buyers and sellers
respectively.
SUPPORT ENTERPRISES
Profits Tax for 2020-2021 will be reduced by 100%, subject to a ceiling
of HK$10,000 (2019-2020: HK$20,000). The reduction will be reflected in the final
tax payable for the year of assessment 2020-2021;
Concessionary low-interest loan;
Extension six months of the Pre-approved Principal Payment Holiday Scheme;SUPPORT ENTERPRISES (continued)
Waive rates for non-domestic properties for 2021-2022, subject to a ceiling of
HK$5,000 per quarter in first two quarters and HK$2,000 per quarter for remaining
two quarters;
Continue to implement relief measures announced last year;
Waive the business registration fees for 2021-2022;
Water and sewage charges of non-domestic households: waive 75% of charges for
every month, subject to a monthly cap of HK$20,000 and HK$12,500 respectively.
ACHIEVE DIVERSIFIED ECONOMY, INNOVATION AND TECHNOLOGY (I&T)
Issue no less than HK$24 billion of Silver Bond and no less than HK$15 billion of
iBond this year. Lower the eligible age for Silver Bond subscription from 65 to 60;
Issue green bonds totalling HK$175.5 billion within the next 5 years, and plan to issue
retail green bonds;
Roll out Green and Sustainable Finance Grant Scheme to subsidise expenses on bond
issuance and external review services;
Strive for the launch of Southbound Trading of Bond Connect within this year, and
enhance the domestic Central Money markets Unit;
Provide subsidy for Real Estate Investment Trusts to list in Hong Kong;
Launch a Pilot Insurance-linked Securities Grant Scheme to subsidise issuance cost;
Provide subsidy for Open-ended Fund Companies to set up in or re-domicile to Hong
Kong;
Review tax arrangements relevant to family office business;
Earmark over HK$200 million to roll out “Knowing More About IT” Programme,
subsidise primary schools to enhance students’ interests and knowledge in I&T and
their applications through extra-curricular activities;
Regularise the pilot scheme which subsidises students studying science and
technology in local universities to enrol in short-term I&T related internships;
Inject HK$9.5 billion into the Innovation and Technology Fund by two yearly
instalments;ACHIEVE DIVERSIFIED ECONOMY, INNOVATION AND TECHNOLOGY (I&T)
(continued)
Hong Kong Monetary Authority to consider enhancing its Fintech Supervisory
Sandbox to reduce time for launching innovative financial products in the market;
Press ahead with the development of the Hong Kong-Shenzhen Innovation and
Technology Park in the Lok Ma Chau Loop;
Continue to implement the Science Park expansion and Cyberport 5 development;
Continue to support the development of 5G networks and applications;
Commence progressively the operation of the first batch of about 20 R&D
laboratories under the “InnoHK Research Clusters” in the first quarter of this year;
ACUTUS welcome the Budget’s cautious and targeted measures, which pave the way
to foster post-pandemic economic resilience and betterment of livelihood.Appendix
PROFITS TAX
2021-2022* 2020-2021
(unchanged)
Corporations Tax rate Tax rate
- First HK$2m profits 8.25% 8.25%
- The remainder 16.5% 16.5%
Unincorporated business 15% 15%
Capital gains Nil Nil
Dividend Nil Nil
*For 2020-2021, the profits tax is proposed to be reduced by 100%, subject to a ceiling
of HK$10,000. (2019-2020: HK$20,000)
SALARIES TAX
Salaries tax is charged at the lower of net chargeable income (Total Income –
Deductions – Allowances) at progressive rates or net total income (Assessable Income
– Deductions) at standard rate.
Standard rate remains the same at 15%.
Progressive rates are as follows:
2021-2022* 2020-2021
(unchanged)
First HK$50,000 chargeable income 2% 2%
Next HKS50,000 6% 6%
Next HK$50,000 10% 10%
Next HK$50,000 14% 14%
Remainder 17% 17%
*For 2020-2021, the salaries tax and tax under personal assessment are proposed to be
reduced by 100%, subject to a ceiling of HK$10,000. (2019-2020: HK$20,000)ALLOWANCES
2021-2022 2020-2021
(unchanged)
Personal allowance
Basic HK$132,000 HK$132,000
Married HK$264,000 HK$264,000
Single Parent HK$132,000 HK$132,000
Disabled HK$75,000 HK$75,000
Child allowances (1st to 9th child) (each)
In the Year of Birth HK$240,000 HK$240,000
Other years HK$120,000 HK$120,000
Dependent parent/grandparent allowances (each)
Basic (Age 60 or above) HK$50,000 HK$50,000
Additional allowance (for dependent living with HK$50,000 HK$50,000
taxpayer) (Age 60 or above)
Basic (Age 55-59) HK$25,000 HK$25,000
Additional allowance (for dependent living with HK$25,000 HK$25,000
taxpayer) (Age 55-59)
Dependent brother/sister allowance (each) HK$37,500 HK$37,500
Disabled dependent allowance (each) HK$75,000 HK$75,000
DEDUCTIONS
Maximum Limits
2021-2022 2020-2021
(unchanged)
Self-Education expenses HK$100,000 HK$100,000
Home loan interest HK$100,000 HK$100,000
(20 years of (20 years of
entitlement entitlement
period) period)
Elderly residential care expenses HK$100,000 HK$100,000
Mandatory contributions to recognized retirement HK$18,000 HK$18,000
schemes
Approved charitable donations 35% of assessable 35% of assessable
income income
Annuity premiums and MPF voluntary HK$60,000 HK$60,000
contributions
Premiums paid under voluntary Health Insurance HK$8,000 HK$8,000
SchemePROPERTY TAX
The standard rate (for non-corporate owners) remains at 15% for 2021-2022.
If you wish to understand more on the budget, please feel free to approach:
Ms Peggy Fung - Email: peggy.fung@acutus-hk.com
Ms Cobi Yip - Email: cobi.yip@acutus-hk.com
Address: Unit 201 2nd Floor Tesbury Centre
28 Queen’s Road East Wanchai
Hong Kong SAR
Singapore office
Mr Jimmy Oei - Email: jimmy.oei@acutus-ca.com
Ms Ang Poh Geok - Email: pohgeok.ang@acutus-ca.com
DISCLAIMER: This article is issued exclusively for the general information of clients and staff of Acutus. The material should not be relied upon without
appropriate professional advice. Acutus will not be liable for any loss or damage arising out of or in connection with the material contained in this publication.
© March 2021. This article is contributed by Acutus Tax & Corporate Services Limited. All rights reservedYou can also read
