HONG KONG – ASEAN COLLABORATION

Hong Kong Chief Executive, Mr. John LEE led a delegation to visit Singapore, Malaysia and Indonesia. During the trip, more than 30 MoUs have been signed. Thus, the act is signaling a closer collaboration based on a shared vision of prosperity and development in Asia.

hk-asean-collaboration

What are the achievements

  1. Established the friendship and communication with the leaders of the three countries, and established communication with the Secretary-General of ASEAN;
  2. A total of 33 MOUs and agreements have been signed with different organisations of the three countries. The number of MOUs and agreements signed was the highest among similar trips and they cover such areas as trading and commerce, investment, finance, innovation and technology, logistics, academic research and cultural exchange. They signify that the importance accorded to Hong Kong has far exceeded expectations;
  3. Singapore, Indonesia and Malaysia have reaffirmed their support to Hong Kong’s accession to the Regional Comprehensive Economic Partnership;
  4. The Hong Kong Government and the Government of Singapore have agreed to reconvene the civil service exchange programme suspended earlier due to the pandemic; and
  5. The Government of Malaysia has extended the visa-free entry for holders of the HKSAR passport to Malaysia from one month to 90 days, benefitting all holders of the HKSAR passport.

What is the Economic Trend?

Malaysia’s economic performance was most encouraging, with its GDP growing 8.7% in 2022, the highest growth recorded in decades. For the ASEAN bloc, economic growth expects to be 4.6% in 2023. Moreover, the world’s economic centre of gravity is moving eastwards. And this trend is crucial for Hong Kong in capitalising on this trend of robust growth in our region.

With a vibrant and rapidly growing market in Guangdong-Hong Kong-Macao Greater Bay Area (GBA), the AESAN can step into China Market via Hong Kong.

For further information, please contact us.

You may want to read: Hong Kong BUD Fund

FREQUENT VISITORS E-CHANNEL SERVICES, HONG KONG

Lining up to go through the immigration is always headache when travelling. As you may need to spend up to 2 hours to the immigration officer booth. However, if you have enrolled for the E-Channel service. Then you can save your time and go through the immigration at an ease.

Are you eligible to enrol the E-Channel Service?

You may eligible to enrol for the e-Channel service if fulfilling the following criteria:

1/ Aged 18 or above;

2/ Holding a valid travel document and where appropriate, valid multiple visit visa;

3/ Holding one of the following valid documents:

– HKSAR Travel Pass;

– APEC Business Travel Card with ‘HKG’ printed on the reverse side; or

– Frequent Flyer Programme membership card issued by airlines which have joined this scheme (please enquire with airlines for details).

4/ For passenger not holding one of the documents mentioned in item (3) above:

– Holding a valid travel document which is not required to have entry visa / permit for entering the HKSAR; and

– Has made visits to the HKSAR via the Hong Kong International Airport for no fewer than 3 times in the past 12 months immediately before enrolment for the e-Channel service.

5/ No adverse record in the HKSAR

Where to enrol?

You can enrol for the E-Channel service free of charge at E-Channel Enrolment Offices. The offices are located at the Immigration Headquarters and the Hong Kong International Airport.

What documents you have to prepare?

At the enrolment, you have to present your

-valid HKSAR Travel Pass, APEC Business Travel Card or Frequent Flyer Programme membership card,

-valid travel document and a multiple visit visa (if applicable), sign an enrolment notice, with fingerprints and photograph taken and have a bar-code sticker affixed to the enrolled travel document.

If there are any changes in the enrolment information, you need to update the changes in person at an Enrolment office. Otherwise, you are not able to use the E-Channel service.

For further information, please contact us.

You may want to read: APEC Travel Card arrangements with US and Canada

BUSINESS IDEAS IN HONG KONG

Hong Kong is a well-known international business hub. No matter you are startups or growing companies, Hong Kong is an ideal place to ensure your success with your business ideas. We don’t have the crystal ball to see the future. But the magic is to choose the business that is going to be just right for you.

business ideas

What types of business can be done in Hong Kong?

Whatever business can be run in Hong Kong, if it is not illegal. For example, cannabis trading and alternative smoking products (E-cigarettes) are banned in 2022. Let’s take a look at the list of Hong Kong’s most profitable business ideas. Hope it can strike your interest:

  1. Mobile App Developers
  2. Website development and design
  3. Trading
  4. Real Estate
  5. Tourism
  6. F&B Catering Service
  7. Online tutoring
  8. Marketing and Consultancy Service

How to get start your business?

If you are wanting to start your business in Hong Kong, but you are not quite sure where to start. Centre O can help you establish your business. We provide you with a wide range of business services along with the business space so you and your clients can feel comfortable in a professional working environment and your business can flourish.

For further information, please contact us.

You may want to read: Relocating your business to Hong Kong?

HONG KONG: BUDGET HIGHLIGHTS 2023-24

Overview

The Financial Secretary, Mr. Paul Chan, delivered the 2023/24 Budget Speech on

22nd February 2023. The forecasted deficit of about $139.8 billion for 2022/23 is

higher than the original estimate of about $56 billion. Then, the fiscal reserves estimation decreases to $762.9 billion, equivalent to 12 months of government expenditure.

budget

Where are we NOW?

Hong Kong is at the early recovery stage. And members of the public as well as a large number of enterprises are still weighed down by tremendous pressure and require support. Meanwhile, in the face of intense competition and imminent development needs. Hong Kong has to fully and speedily press ahead with high-quality economic development. So, the budget will support planning and a front-loaded approach.

Budget Highlights of Key Measures

Support enterprises and the general public

  • Reduce profits tax, salaries tax and tax under personal assessment for the year of assessment 2022/23 by 100%, subject to a ceiling of $6,000.
  • Provide rates concession for domestic and non-domestic properties for the first two quarters of 2023/24, subject to a ceiling of $1,000 per quarter for each rateable property.
  • Increase tax deduction for the Mandatory Provident Fund voluntary contributions made by employers for their employees aged 65 or above, from the current 100% to 200% in respect of such expenditure.
  • Increase the basic child allowance and the additional child allowance for each child born during the year of assessment from $120,000 to $130,000 starting from the year of assessment 2023/24.
  • Adjust computation of stamp duty to ease the burden on ordinary families of purchasing their first residential properties, particularly small and medium residential units. For example, a property worth of $8 million may save $60,000 in stamp duty.

Attract investments and promote high quality growth

  • Conduct consultation and submit legislative proposals in 2023/24 to introduce a mechanism to facilitate companies domiciled overseas, particularly enterprises with a business focus in the Asia Pacific region, for re-domiciliation to Hong Kong, so that these companies may utilise our favourable business environment and professional services.
  • Introduced legislative amendments into the Legislative Council (LegCo) in December 2022 to provide profits tax exemption for qualifying transactions of family-owned investment holding vehicles managed by single family offices in Hong Kong. Upon passage of the proposal, the tax concession arrangements will be applicable to any years of assessment on or after 1 April 2022.
  • Enhance the listing rules in order to strike a balance between market development and regulatory needs, including relevant arrangement concerning share buy-backs by issuers.
  • Work with regulators to refine the regulatory measures and tax arrangements for the asset and wealth management sector as well as to review the existing tax concession
  • measures applicable to funds and carried interest.
  • Introduce a bill into the LegCo in the fourth quarter of 2023 to enhance the aircraft leasing preferential tax regime, striving to establish Hong Kong as an aircraft leasing and services hub.
  • Introduce a ‘patent box’ tax incentive to encourage the information and technology sector to create more patented inventions.

Tax policy and other measure to increase revenue

  • Keep profits tax and salaries tax rates unchanged.
  • Impose an annual special football betting duty of $2.4 billion on the Hong Kong Jockey Club for five years starting from 2023/24.
  • Introduce a progressive rating system for domestic properties in 2024/25 (announced in the 2022/23 budget).
  • Plan to issue no less than $50 billion of Silver Bond and $15 billion of retail green bonds in the next financial year, so as to facilitate market development and at the same time offer members of the public investment options with steady returns.
  • Further expand the scope of the Government Green Bond Programme to cover sustainable finance projects, and set up an Infrastructure Bond Scheme to better manage the cash flow needs of major infrastructure projects.
  • Plan to apply the global minimum effective tax rate on large multinational enterprise (MNE) groups and implement the domestic minimum top-up tax starting from 2025 onwards.
  • Put forward an enhancement proposal in mid-March to provide clearer guidelines on whether onshore gains on disposal of equity interests are subject to tax.

For further information, please contact us.

You may want to read: 2022-2023 HONG KONG BUDGET HIGHLIGHTS

HONG KONG ROLLS OUT CONSUMPTION VOUCHER 2023

Consumption Voucher

Hong Kong will roll out another round of electronic consumption voucher 2023 that worth HK$5,000 again to permanent adult. The payment will separate in two instalments. 

CONSUMPTION VOUCHER 2023

What about Hong Kong Resident?

If you are coming to Hong Kong on different admission schemes, or overseas students studying in Hong Kong. You still can receive the voucher in half value at HK$2,500. 

When can you receive the consumption voucher 2023?

The first instalment of HK$3,000 or HK$1,500 rolled out on 16th April. While the second instalment will disburse on 16th July.

How to receive your consumption vouchers 2023?

You are no need to re-register if you have successfully registered under the 2022 Consumption Voucher Scheme. The payment will directly to your previously registered stored value facility accounts.

What payment gateway can you use?

AlipayHK / BoC Pay / PayMe from HSBC / Tap & Go / WeChat Pay HK / Octopus

For further information, please contact us.

You may want to read: 2022-2023 HONG KONG BUDGET HIGHLIGHTS

HONG KONG: LODGEMENT OF 2022/23 PROFIT TAX RETURNS

The profits tax filing season sent with the bulk issuance of the 2023/23 profit tax returns on 3rd April 2023.

Profit Tax Returns

Dates for filing the 2022/23 Profit Tax Returns

If you would like for extension for tax filing, you have to send your application within 1 month from the date of issue. The extended due dates for filing the 2022/23 profits tax returns under the Block Extension Scheme (i.e. for taxpayers with a tax representative) are as follows:

Accounting Date CodeExtended Due DateFurther Extended Due Date for Semi-electronic / electronic filing
“N” Code (1 Apr 2022 – 30 Nov 2022)3 May 2023
(No Extension)		3 Jun 2023
“D”Code
(1 Dec 2022 – 31 Dec 2022)		15 August 202315 September 2023
“M” Code (1 Jan 2023 – 31 Mar 2023)15 November 202315 December 2023

Newly Registered Business

For newly setup companies, the first Profit Tax Return will issue around 18-month after the date of commencement of a new business. However, where circumstances warrant, the Department may issue a Provisional Profits Tax Return for completion as an earlier date.

For the Tax Return filing, the business owners have to submit the first returns with 3 months. If they failed to reply within 3 months from the date of issue. Then late penalties will be applied.

What’s NEW?

Previously, the small corporations and business with gross income not exceeding $2-million was no need to submit supporting document. Started from 1st April 2023, the small corporations need to provide furnishing supporting documents when filing.

Schedule from Inland Revenue Department to Hong Kong Limited Companies

DateEvent
3 & 4 April 2023Bulk issue of Profits Tax returns
3 May 2023Deadline for submitting list of new clients for which your firm was appointed as tax representative on or after 22 February 2023 with “D” & “M” code returns on “Schedule” basis
3 May 2023Deadline for submitting list of taxpayers (on “Schedule” basis) who have : ceased to be your clients for 2022/23 final assessment purposes changed their accounting dates
3 May 2023Due date for “N” code returns – “active” files
4 May 2023Due date for “N” code returns
1 Jun 2023Deadline for notifying changes of clients’ details occurring between 3 and 31 May 2023 on “Schedule” basis
15 Aug 2023Extended due date for “D” code returns
1 Nov 2023Deadline for submitting further extension list for “M” code current year loss cases (Exceptionally, requests in individual cases may be lodged on or before 15 November 2023)
15 Nov 2023Extended due date for “M” code returns
31 Jan 2024Final extended due date for “M” code current year loss cases filed electronically or not

Schedule from Inland Revenue Department to Individual Taxpayers in Hong Kong

DateEvent
2 May 2023Bulk issue of Tax Return – Individuals
2 Jun 2023Deadline for submitting list of clients whom you have commenced or ceased to represent which the Department had not been notified prior to 10 March 2023
2 Jun 2023Due date for unrepresented cases not involving sole-proprietorship business
3 Jul 2023Extended due date for represented cases not involving sole-proprietorship business
2 Aug 2023Due date for unrepresented cases involving sole-proprietorship business
3 Oct 2023Extended due date for represented cases involving sole-proprietorship business

For further information, please contact us.

You may want to read: What to do when I receive a Profit Tax Return?

HONG KONG: THE BUD FUND – EASY BUD

What is BUD FUND?

Hong Kong Government set up a “Dedicated Fund on Branding, Upgrading and Domestic Sales” (“the BUD Fund”) in June 2012. The purposes are assisting enterprises in exploring and developing the market via:

  1. Developing brands
  2. Upgrading and restructuring the operation
  3. Promoting domestic sales in the market

The Government extended the geographical coverage of the BUD Fund in August 2018 to also include the Association of Southeast Asian Nation (“ASEAN”) markets.  A further expansion of the geographical coverage was implemented in January 2020 to cover other economies with which Hong Kong had signed Free Trade Agreements (“FTAs”) to assist enterprises in taking the economic opportunities.

The Government launched enhancement measures by phases in July 2021, including extending the geographical coverage of the Fund to include all economies with which Hong Kong has signed Investment Promotion and Protection Agreements (“IPPAs“).

To strengthen the support to enterprises in enhancing their competitiveness and developing diversified markets, the cumulative funding ceiling per enterprise under the BUD Fund has been increased to HK$7,000,000 and the maximum number of approved projects per enterprise has been increased to 70 in November 2022.

BUD Fund
Image of two young businessmen discussing new project in office

What’s New?

The Government launched “Easy BUD” on 16 Jun 2023 to facilitate SMEs in preparing applications and implementing projects. The processing time of “Easy BUD” is shortened with simplified application and streamlined vetting arrangements. The funding ceiling capped at HK$100,000 per “Easy BUD” application.

The BUD Fund – Easy BUD

To expedite the processing of applications, so as to enable more SMEs to make use of the funding to develop their business. The Government launched “Easy BUD” under the “BUD Fund”. The application form and the requirements for supporting documents have simplified. The vetting arrangements have also been streamlined with the processing time of “Easy BUD” applications halved to within 30 working days.

Programme Outline

Eligibility

Not-listed enterprises registered under the Business Registration Ordinance (Chapter 310), with “Substantive business Operations” in Hong Kong

Geographical Scope

Mainland and other economies with which Hong Kong has signed Free Trade Agreement and/or Investment Promotion and Protection Agreements.

Funding Ceiling per Approved Project

Maximum funding amount is HK$100,000. Funding on 50:50 matching basis.

Project Commencement

The soonest the next day after the application submission

Project Duration

Maximum of 12 months

Application Period

Application is open all year round. Each enterprise can submit ONE application every 6 months.

Project Measures

  • Advertisement
  • Participation in exhibitions and related expenses
  • Design and production of promotional materials
  • Patent/trademark registration
  • Testing and certification
  • Mobile application of promotional purpose
  • Development or enhancement of company website

For further information, please contact us.

You may want to read: Hong Kong BUD Fund

HONG KONG: FULLY VIRTUAL GENERAL MEETINGS FOR HONG KONG LIMITED COMPANIES

What’s New?

Starting from 28th April 2023, the Companies (Amendment) Ordinance 2023 (the “Amendment Ordinance”) came into operation in Hong Kong. The Companies Registry (CR)accepts holding an annual general meeting (AGM) or general meeting (GM) in virtual methods. members of Hong Kong Companies will no longer need to show up in person to attend the general meetings.

HONG KONG FULLY VIRTUAL GENERAL MEETINGS

What is the difference?

Prior to 28th April 2023, CR did not accept holding AGMs or GMs virtually. Furthermore, section 584 of the Companies Ordinance (CO) only stated that a company may hold a GM at two or more places using any technology. The venue must enable the members of the company who are not together at the same place to listen, speak and vote at the meeting.

The key changes/clarification in the Amendment Ordinance: –

  1. “Virtual meeting technology” means a technology that allows a person to listen, speak and vote at a meeting without being physically present at the meeting.
  2. A notice of a general meeting to members (or on a website) must specify, the physical venue of the meeting or the virtual meeting technology to be used for holding the meeting, or both.
  3. A notice may specify the virtual meeting technology to be used for holding the meeting unless the company’s AOA expressly preclude the holding of a general meeting by using virtual meeting technology or require a general meeting to be held only at a physical venue
  4. A company may hold a fully physical, a fully virtual, or a partially physical and virtual meeting.
  5. When a general meeting of a company is held at two or more physical venues, the company must use any technology that allows the members of the company who are not together at the same physical venue to listen, speak and vote at the meeting regardless of whether virtual meeting technology is also used for holding the meeting.
  6. A person who attends a general meeting by using the virtual meeting technology specified in the notice of the meeting is to be regarded as being present.

For further information, please contact us.

You may want to read: Holding Annual General Meeting during COVID-19