The 2020-2021 Budget Help Businesses in Hong Kong

Our Hong Kong Financial Secretary, Mr Paul Chan recently proposed his 2020 to 2021 budget to help businesses in Hong Kong. He claimed 2019 was a difficult year for both companies and society.  Starting with the on going world-wide trade conflict. Then the social unrest.  Before the Hong Kong Government has sort out the problem. Now suffering from an even more serious setback of coronavirus epidemic. 

As the result, these risks hit Hong Kong’s economy, and businesses are facing their biggest challenge in years. Therefore, Chan has decided to implement a massive scale involving above $120 billion. So as the budget to assist local enterprises to ride out the difficulties as far as possible. 

The 2020 to 2021 budget helps from 2 major aspects:

  1. Support enterprises and safeguard jobs;
  2. Stimulate the economy and relieve people’s burden.

Below are the highlights of Support enterprises“ for enterprises:

Support local companies:

  • Introduce a concessionary low-interest loan with 100% Government guarantee. Maximum loan of $2 million with repayment period up to 3 years.
  • Waive rates for non-domestic properties for 2020-21, subject to a ceiling of $5,000 per quarter in first two quarters and $1,500 per quarter for remaining two quarters.
  • Waive business registration fees for 2020-21 and company annual returns for 2 years.
  • Reduce profits tax for 2019-20 assessment year by 100%, subject to a $20,000 ceiling.
  • Local recycling enterprises: provide $100 million rental subsidy for 6 months.
  • Temporary short-term rental waivers for Government properties: 50% reduction for 6 months 
  • Hire charges for civic centres under Leisure and Cultural Services Department: 50% reduction for 6 months.
  • Fees and rent for cruise lines and cruise terminal tenants: reduction for 6 months.

Still, this is the proposal and subject to final approval from the Legislative Council.

You may want to read: http://centreo.hk/2019-2020-budget-highlights-enterprises-hong-kong/

For more information, please contact us sales@centreo.hk

2020-2021 Budget leads Hong Kong to a diversified economy

The main purposes of budget 2020-2021 are revitalising economy and relieving burden from the locals. Our Financial Secretary, Paul Chan focused on leading Hong Kong to a diversified economy.

 

Looking back 2019, GDP growth rate was -1.2%. This figure shown there was slightly decline in previous year. Hong Kong may experience a negative or very slow economic growth in 2020. So, Chan forecasts the GP growth rate for 2020 is -1.5% to 0.5%.  The government planned to raise its expenditure along with relief measures. This will help the city to ride out the economic slump.

 

The budget proposed will leads our economy to ride out the difficulties through below aspects:

Relieving People’s burden

  • $10,000 cash payout to every Hong Kong permanent residents aged 18 or above

Financial Services

  • Launch a $1 billion pilot scheme for fixed-rate mortgages to help reduce risks of interest rate volatility for homebuyers
  • Issue inflation-linked retail bonds and Silver Bonds totalling not less than $13 billion
  • Issue green bonds totalling $66 billion in next 5 years

Innovation and Technology

  • Earmark $3 billion to take forward Phase 2 of the Science Park Expansion Programme
  • Explore the establishment of a third InnoHK research cluster
  • Increase the grant ceiling under the Technology Voucher Programme to $600,000 and raise the Government’s funding ratio to 75%
  • Inject $345 million for a pilot subsidy scheme to encourage the logistics industry to enhance productivity through the application of technology

Tourism

  • Additional funding of over $700 million for the Hong Kong Tourism Board to step up external promotion after the epidemic

Trade

  • Additional funding of $150 million for the Hong Kong Trade Development Council to assist Hong Kong enterprises in exploring business opportunities

Professional Services

  • Earmark about $450 million to implement the “Vision 2030 for Rule of Law” project to strengthen the Hong Kong community’s understanding of the concept of the rule of law and its implementation

Cultural and Creative Industries

  • Additional $900 million to the Art Development Matching Grants Scheme to promote sponsorship of culture and arts from all sectors

Nurture Talents

  • Expand the Researcher Programme and Postdoctoral Hub to cover all technology companies conducting R&D activities in Hong Kong

Still, this is the proposal and subject to final approval from the Legislative Council.

You may want to read: http://centreo.hk/2020-budget-help-businesses-hong-kong/

For more information, please contact us sales@centreo.hk

2020-2021年财政预算案引领香港走向多元化经济

2020-2021年预算的主要目的是振兴经济和减轻当地人的负担。我们的财政司司长陈茂波专注于带领香港走向多元化的经济。
 
回顾2019年的GDP增速为-1.2%。这个数字表明去年略有下降。 香港在2020年可能会出现负增长或非常缓慢的经济增长。因此，陈茂波预测2020年的GDP(与文中不符)增长率为-1.5%至0.5%。政府计划在采取救济措施的同时增加支出，这将有助于该市渡过经济衰退。
 
预算案拟议将通过以下几个方面带领我们的经济渡过难关：
减轻人民负担
向每位年满 18 岁或以上的香港永久性居民派发 $10,000港元 现金
金融服务
推出一项 10 亿元的固定利率抵押贷款试点计划，以帮助降低购房者的利率波动风险
发行总额不少于 130 亿港元的通胀挂钩零售债券和白银债券
未来 5 年发行总额 660 亿美元的绿色债券
创新科技
拨出 30 亿元推进科学园扩建计划第二阶段
探索建立第三个InnoHK研究集群
将科技券计划的拨款上限提高至 60 万港元，并将政府的拨款比率提高至 75%
注资3.45亿元，作为一项试验性补贴计划，鼓励物流业应用科技，提高生产力

旅游
为香港旅游发展局增拨逾7亿元，加强疫情过后的对外宣传
贸易
向香港贸易发展局额外拨款1.5亿元，协助港企开拓商机
专业的服务
拨出约 4.5 亿元推行「法治愿景 2030」计划，加强香港社会对法治理念的认识和实施
文化创意产业
向艺术发展配对资助计划额外拨款 9 亿元，以促进各界对文化艺术的赞助
培养人才
拓展研究人员计划和博士后中心，覆盖在香港开展研发活动的所有科技公司
不过，这仍是提案，有待立法会的最终批准。
你可能想了解：http :  //centreo.hk/2020-budget-help-businesses-hong-kong/
如需了解更多信息，请联系我们 sales@centreo.hk

2020-2021年财政预算案助力香港企业

.我们的香港财政司司长陈茂波先生最近提出了 2020 年至 2021 年的预算，以帮助香港的企业。他声称 2019 年对公司和社会来说都是艰难的一年。从正在进行的全球贸易冲突开始，然后是社会动荡。之前港府已经解决了这个问题。现在正遭受着更严重的冠状病毒流行的挫折。 
结果，这些风险打击了香港的经济，企业正面临多年来最大的挑战。 因此，陈决定实施涉及超过1200亿美元的大规模实施，从而尽可能协助本土企业渡过难关。 
2020 年至 2021 年的预算有两个主要方面的帮助：
扶持企业，保障就业；
提振经济，减轻人民负担。
以下是“支持企业”对企业的亮点：
支持本地公司：
提供100%政府担保的企业优惠低息贷款。最高贷款额为 200 万港元，还款期长达 3 年。
2020-21 年非住宅物业的豁免费率，前两个季度的上限为每季度 5,000 港元，其余两个季度的上限为每季度 1,500 港元。
免除 2020-21 年的商业登记费和 2 年的公司年报。
将 2019-20 课税年度的利得税减低 100%，但上限为 $20,000港元。
本地回收业：拨款1亿港元，提供6个月的租金资助。
政府物业及土地/临时地契条款豁免租金：6个月宽免50% 
康文署文娱中心设施基本场租：6个月宽免50%。
邮轮公司和邮轮码头商户租金：宽免 6 个月。
不过，这仍是提案，有待立法会的最终批准。
你可能想了解：
http :  //centreo.hk/2019-2020-budget-highlights-enterprises-hong-kong/
如需了解更多信息，请联系我们 sales@centreo.hk

科技卷计划（TVP）

创新科技署于 2016 年推出科技券计划。目的是资助香港中小型企业积极使用科技服务，努力提升科技方案，以提高工作效率或实现升级转型。2 月 26 日，宣布 TVP 基金现已转为针对香港公司的常规资助计划。 
新措施
在 2020-21 预算期间，TVP 进一步加强以协助公司改进：
 利用科技；
企业运营；
提升企业竞争力
每位申请人的资助比例已从最高实际项目成本的 2/3 增加到 3/4，资助上限已由400,000港元增加至600,000港元，不仅如此，每个申请人的项目数量已从 4 个增加到 6 个。
 
什么时候申请？
最新措施将适用于 2020 年 4 月 1 日或之后递交的申请。
有意申请新的 TVP 拨款的申请人应撤回原申请（如有），并在 2020 年 4 月 1 日或之后递交新的申请。 
 
截止日期是什么时候？
TVP全年开放申请，即将于2020年5月8日截止申请。
 
如需了解更多信息，请联系 我们 
你可能想了解： 香港政府资助中小企业

雇主报税

在香港经营业务的雇主们有义务每年就所有雇员向香港税务局提交雇主报税表，无论其雇员是在香港或在香港意外地区提供服务。
税务局会在每年四月的第一个工作日向雇主发出雇主报税表（表格 BIR56A）。对于新成立的公司，雇主则在完成第一次审计后的 3 至 6 个月内收到雇主报税表。雇主须在表格发出的一个月内填妥表格BIR56A，然后连同 IR56B 表格一齐交回给香港税务局。
为什么雇主须履行报税责任？
根据法律，雇主须就每名雇员向税务局提交有一份《雇主填报薪酬及退休金报税表》（雇主申报表），填报该雇员的个人资料及在有关课税年度内向该雇员支付的薪酬等资料。
雇主的义务如下：
保存雇员至少七年的薪酬记录
须按时提交雇主报税表（BIR56A 和 IR56B），如果有任何状态更新，须填写表格 IR56E、IR56F 和 IR56G 通知税务局。
 
申报时间，逾期未交的惩罚
通常，雇主应在表格发出的一个月之内填写并提交雇主报税表。然而，雇主也可以申请将递交时间延长，申请须经税务局局长批准后方可生效。 
《税务条例》对以下任何人士处以重罚：
在无合理辩解的情况下，不按照通知规定填报报税表；
在无合理辩解的情况下，填报不正确的报税表；
虚假申报意图逃税，或协助他人逃税；或者
在无合理辩解的情况下，有应课或者可能应课薪俸税的雇员，因开始、停止雇佣或者已离开香港却未以书面形式通知税务局的。 
如需了解更多信息，请联系我们 
 
您可能想要了解：  我是一名外籍人士，在香港开展业务吗？即使我没有正式领取薪水，我是否也必须报名参加强积金计划？

What is Technology Voucher Programme (TVP)?

Innovation and Technology Commission introduced the Technology Voucher Programme in 2016.  The mission is to support small and medium companies in Hong Kong to improve productivity or upgrade or transform local operating business processes with the use of technology.  On 26 February, it was announced that TVP fund is now converted to a regular funding programme for companies in Hong Kong. 

What’s New?

During the 2020-21 Budget, the TVP has further enhance to assist companies to improve on:

 making use of technologies;

businesses operation;

enhance competitiveness for businesses

The funding ratio for each applicant has increased from maximum of  2/3 of the actual project cost to 3/4. The funding ceiling  has increased from HK$400,000 to HK$600,000. Nevertheless, the number of projects per applicant has increased from 4 to 6.

 

When to apply?

The latest measures will be applicable to applications received on or after 1 April 2020.

Applicants wishing to apply under the new TVP funds enhancement should withdraw the original application ( if any)  and submit a new application on or after 1 April, 2020. 

 

When is the deadline?

TVP is open for application throughout the year, and the up-coming batch of application will be close on 8 May 2020.

 

For more information, please contact us 

You may also read: HONG KONG GOVERNMENT FUNDING FOR SMES

What is Employer’s Return

Company carrying on business in Hong Kong is obliged to file the Employer’s Return to Inland Revenue Department (IRD) annually for all its employees. No matter the employee rendered services in or outside Hong Kong.

IRD will send the Employer’s Return (Form BIR56A) to the employers on the first working day of April each year. For newly setup companies, employers will receive Employer’s Return between 3 to 6 months after filing their first audit. Employers require to complete and return the form to the IRD WITHIN ONE MONTH with the IR56B for the relevant employees.

Why is employer liable to submit Employer’s Return?

By law, employers require to file the Employer’s Return of Remuneration and Pensions (Employer’s Return) with the IRD. In respect of each employee, furnishing information such as the employee’s personal particulars and remuneration paid to the employee in the relevant year of assessment, etc.

There are obligations of employer as below:

  1. Keeping payroll records for at least 7 years
  2. Submitting annual employer’s return (BIR56A & IR56B) on time, and notifying IRD with notification form IR56E, IR56F and IR56G if there is any status updated.


When to File? Penalties if not able to file on time

Generally, the Employer should file the Employer’s Return WITHIN ONE MONTH from the date of issue.  However, employers can apply for extension of time for submission. It will be subject to the approval of Commissioner of the IRD. 

The Inland Revenue Ordinance provides heavy penalties for any person who:

  1. Fails to comply with the requirements of a notice to make a return without reasonable excuse;
  2. Makes an incorrect return without reasonable excuse;
  3. Makes a false return with a fraudulent intent to evade tax, or to assist any other person to evade tax; or
  4. Fails to give notice in writing of a commencement or cessation of employment, or the departure from Hong Kong, of any employee, who is or is likely to be chargeable to Salaries Tax without excuse.

 

For more information, please contact us 

 

You may also read: I AM AN EXPAT, RUNNING MY BUSINESS IN HONG KONG? DO I HAVE TO ENROL FOR MPF EVEN THOUGH I DO NOT OFFICIALLY RECEIVE A SALARY?

Company Registry – Failure to Deliver Annual Return

Is your Company Secretary assisting on maintaining and up keeping your Hong Kong Limited company on time?What will happen if you do not file your Annual Return to Company Registry on time?

According to section 899 of the Company Ordinance, the Registrar will issue an official notice to a company which fail to deliver Annual Return on timely manner.  Company must response to the notice with 28 days after issued, including:

  1. Sign the Confirmation of Acceptance (Form NCO1) and pay to the Registrar the amount of HK$600; and
  2. Deliver the outstanding Annual Return (together with the requisite annual registration fee) to the Registrar for registration.

 

Shareholders, Ultimate Beneficially Owner and the Directors  of the company is responsible for filing the Annual Return.  If commit an offence under Company Ordinance section 622(6), upon conviction each is liable to a fine up to $50,000.  For any continuing offence, a further fine of $1,000 for per day during which the offence continues.

Any Company fails to respond to the official notice, the Registrar may consider striking the Company’s name off the Companies Register without further notice under section 744 to 746 of the Companies Ordinance.

Below, we listing out the late registration fee payable on delivery of annual return is set out as below:

More than 42days after but within 3 months after the company’s return date                     HK$  870

More than 3 months after but within 6 months after the company’s return date                  HK$ 1740

More than 6 months after but within 9 months after the company return date                    HK$ 2610

More than 9 months after the company’s return date                                                          HK$ 3480

Centre O assist our corporate clients to fill and file annual return weekly at the Company Registry, for more information please contact our Company Secretary for assistant.

You may also read: How Important is a company secretary? Why does a Hong Kong Limited company needs one?