What the Hong Kong 2021/22 Budget means for your business

Hong Kong’s Financial Secretary Paul Chan gave his 2021/22 budget address on 24 February, announcing the government’s plan to introduce supporting measures that will help alleviate the financial pressure caused by the pandemic.

With a focus on “stabilising the economy and relieving people’s burden”, we’ve picked out the key policies that we think businesses should be aware of:

• Plans to reduce profits/salaries tax for the year 2020/21 by 100%, up to a limit of HK$10,000; and to issue electronic consumption vouchers with a total value of HK$5,000 to Hong Kong permanent residents and new arrivals aged 18 or above. Business registration fees for 2021/22 will be waived.
• A proposal to allow foreign investment funds to re-domicile in Hong Kong for registration as open-ended fund companies or limited partnership funds.
• Plans to provide subsidies covering 70% of the expenses paid to local professional service providers for open-ended fund companies set up or re-domiciled in Hong Kong over the next three years, up to a limit of HK$1 million per open-ended fund company.
• A promise to formulate a roadmap for promoting the diversified development of Hong Kong’s bond market and reinforcing its functions.
• Plans to undertake a series of legislative measures to provide half-rate profits tax concessions to eligible insurance businesses.
• Plans to introduce a bill to raise the rate of stamp duty on Stock Transfers, from the current 0.1% to 0.13% of the consideration or value of each transaction payable by buyers and sellers respectively.

To learn more about the full budget speech, please click here.

Our Hong Kong team provides a full range of corporate, fund, capital market and private wealth services to enable companies, fund managers and individuals to invest, grow and thrive anywhere in the world. If you’re interested to know more about how the latest Hong Kong budget policy affect your business, please contact our experts.