The budget for 2016/17 just launched! This year far more entrepreneurs will benefit from the government as supporting funds and schemes focusing on startups (especially for small and medium-sized enterprises) grow. Several important benefits for SMEs are shown below:
1. A decrease in the profit tax
In order to reduce the burden on SMEs, the government will reduce the profit tax by 75% from 2015/16. This will benefit about one hundred and thirty thousand taxpayers.
2. Waiving of the business registration fee for 2016/17
Business owners will not have to pay the Hk$2250 business registration fee in 2016/17.
3. Allocation of additional funds to attract tourists
The government will allocate HK$240 million funds to major Hong Kong events in 2016/17, in order to rebuild the cosmopolitan image of Hong Kong through the Hong Kong Tourism Board and the subsidization of SMEs travel agents.
4. Enhance SME Financing Guarantee Scheme
The application period for SME Financing Guarantee Scheme will be extended . Therefore, more small and medium-sized enterprises (SMEs) can obtain financial support from participating lenders to meet their working capital and business needs, in order to enhance their productivity and competitiveness in the rapidly changing business environment.
5. The Launch of Pilot Technology Voucher Programme
The government will allocate 500 million to the Innovation & Technology Fund to subsidise SME’s use of technological services and solutions, to upgrade and improve their productivity and upgrade of business processes through Information Technology.
6. License fees waived for hotels, travel agents and restaurants
In order to reduce the operation cost of the tourism industry, the Hong Kong Government has proposed waiving the license fee for 1,800 travel agents, 2,000 hotels and guesthouses, and 27,000 restaurants, hawkers, and operators with restricted food permits for one year.
For more information on how to take advantage of this opportunity, contact Centre O at sales@centreo.hk.