On 24 February 2021, Financial Secretary, the Honourable Paul Chan Mo-po, delivered the budget speech. In his 2021-22 Budget, he laid out a series of economic relief measures.

 

Highlights of the budget

One-off measures:

 

1. Issue $5,000 electronic consumption vouchers in instalments to each eligible Hong Kong permanent resident and new arrival aged 18 or above to facilitate and stimulate local consumption.
2. 100% tax reduction subject to a cap at $10,000 per case of salaries tax and tax under personal assessment for 2020/21.
3. 100% tax reduction subject to a cap at $10,000 per case of profits tax for 2020/21.
4. Rates concession for residential property for 2021/22, subject to a cap of $1,500 per quarter in first two quarters and $1,000 per quarter for remaining two quarter.
5. Rates concession for non-domestic properties for 2021/22, subject to a cap of $5,000 per quarter in first two quarters and $2,000 per quarter for remaining two quarter.
6. Provide an extra allowance to social security recipients, equal to half of month of the standard rate Comprehensive Social Security Assistance (CSSA) payments, Old Age Allowance (OAA), Old Age Living Allowance (OALA) or Disability Allowance. Similar arrangements will apply to Low-income Working Family Allowance (LIFA) and Work Incentive Transport Subsidy.
7. Grant a subsidy of $10,000 to each residetial electricity account.
8. Pay the examination fees for candidates sitting for the 2022 Hong Kong Diploma of Secondary Education (HKDSE) Examination.
9. Introduce a concessionary low-interest loan with 100% Government guarantee for umemployed individuals, which will be open for application for 6 months. Maximum loan of $80,000 with repayment period up to 5 years. Moratorium on principal repayment for first 12 months. Offer reimbursement for interest paid after loans are repaid in full as scheduled.
10. Extend the application period of low-interest loan with 100% Government guarantee for enterprises to the end of this year, raise maximum loan of $6 million, extend repayment period and duration of principal moratorium.
11. Earmark $1 billion to subsidise drainage repair works in over 3,000 old buildings.
12. Allocate $6.6 billion to create around 30,000 time-limited jobs.

Profit tax

1. Profits tax rate for the first HK$2 million of profits of corporations / unincorporated business will be lowered to 8.25% and 7.5% respectively. The remainder of profits of corporations / unincorporated business remain at 16.5% and 15% respectively. Only one entity within a group can benefit from the above reduced rates.

Salaries tax

1. Standard tax rate remain unchanged.

During the potential outbreak of COVID-19 in the world, we do our best and adopt certain policies in our office to minimize the threat of the virus spreading in our community:

1. Implementation of home office for audit department. (Please contact our audit staff by email directly to avoid any delay in response for any audit enquiries.)
2. Mandatory quarantine measure for at least 14 days for staff who had travelled overseas.
3. Cancellation of all overseas business trips.
4. Implementation of video conference to minimize physical contact.
5. Implementation of infection control procedures inside the office.

The measures will adjust regularly in view of the daily report by the government announcement and shall be updated in our website and/or email communication.

Our administration department and company secretarial department are still working in the office to maintain our expertise services.

We can provide solutions for assistance about staff, policies and procedures for office arrangement during current situation.

Let’s work together in the fight against the coronavirus.