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.

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