Are you looking to get all the updates about the Hong Kong budget for 2022? If yes, then this article is for you. The article will elucidate all the most important budget updates for your business. Keep on reading to see how the 2022-2023 Hong Kong budget may affect you.
Hong Kong Budget 2022 – 2023
Budgeting is an important aspect of everyone’s life. Financial plans permit the government to control the tax assessment of different businesses. Investment and consumption are two of the main variables in a country’s financial turn of events. By giving tax cuts and subsidies, the public authority can encourage individuals to put more emphasis on saving and investing. The Hong Kong budget for 2022 has many lucrative deals. Take a look at the Hong Kong budget 2022 -2023 highlights below.
Hong Kong economic indicators and outlook for 2022
The Financial Secretary has anticipated a surplus budget of HK$18.9 billion for the 2021-22 financial year. This is a critical turnaround from the first estimate of a deficit of HK$101.6 billion. This is because of an unforeseen expansion in land-related and profit tax income. Regardless of different pandemic relief measures allowed during the year, Hong Kong’s financial reserves stay solid at an expected HK$946.7 billion as of March 31, 2022. This underlines the solid place of the Hong Kong SAR government’s books and the strength of the Hong Kong economy.
With the fifth wave of the pandemic, the public authority’s financial plan will give genuinely necessary help to residents and organizations that are seriously impacted by the pandemic. We are satisfied that the public authority has taken on our proposed proportion of issuing another round of electronic consumption vouchers to Hong Kong’s extremely durable residents and fresh introductions. We believe this will be a viable measure to help residents and organizations stimulate local consumption temporarily. The electronic consumption vouchers likewise advance the improvement of a digital economy by being a part of the more extensive city plan.
While no new assessments are proposed in the current year’s Budget, it is guessed that there will be future duty regulation changes in Hong Kong. Specifically, it is suggested that the government will present a gradual rating framework in 2024-25. Further, because of the international tax reform by the OECD, the government is looking to implement an assessment bill in 2022 to carry out the OECD’s around the world with the lowest duty rate for enormous global venture bunches with a worldwide turnover of no less than 750 million euros. This will incorporate the introduction of a domestic top-up tax for these groups from the time of appraisal 2024-25. This change will affect many already affected citizens and is determined to give huge extra income. We propose careful thought on the general tax system to ensure Hong Kong remains the main business community in Asia. Likewise, we might want to see that the government will take full advantage of the extra revenue to upgrade Hong Kong’s business climate and intensity.
Hong Kong budget 2022 summary states that there are different measures in reinforcing Hong Kong’s situation as international trade and financial hub and an asset management center. The Budget proposed different tax and non-tax measures supporting the advancement of family offices, the maritime and port, innovation, and technology sectors. Likewise, there are measures in the Budget that will be used to enhance the nature of the workforce and assist with drawing the talent to support Hong Kong’s competitiveness.
The current year’s Budget gives different measures to support residents and organizations during the pandemic while also developing Hong Kong’s medium to long-term competitiveness. We trust that the government will release the implementation details rapidly to assist Hong Kong with moving further along the way to recovery.
Supporting Hong Kong Businesses and Enterprises
Hong Kong’s economy encountered a development of 6.4% in 2021, which turned around the declining pattern of the past two years. Although the Finance Secretary expects a dip in the primary portion of 2022, the measures mentioned below will be instituted to relieve the adverse consequences of Covid-19. Continue reading to know major aspects of the Hong Kong budget 2022.
Tax reduction (Profit tax, Salaries tax, and tax under personal assessment)
Tax is one of the major aspects that entrepreneurs look into. Hong Kong profit tax reduction is one of the most attractive aspects of the Hong Kong budget 2022. The government diminished the Profit tax charge, tax endlessly charged under personal assessment for the year of assessment 2021-22 by as much as 100 percent, dependent upon a ceiling of HKD 10,000 for every case. On the off chance that you are independently chargeable to salaries tax and profit tax, you can appreciate tax reduction under every one of the types of tax.
Waiver of business registration fees or one year from April 1, 2022, to March 31, 2023
Business registration fees cost heavens in some areas. Budding businesses can take a sigh of relief from the hefty cost that they had to pay otherwise, in case they want to incorporate into Hong Kong they no longer have to do that. Business registration charges will be waived for one year, beginning from 1 April 2022 to 31 March 2023. The government still can’t seem to make the essential official changes to the Legislative Council, yet it will do as soon as possible.
Other measures to support enterprise
The government made various other changes to support the enterprise. Some of them are:
- SME loan scheme extended – The current Special 100% Loan Guarantee Scheme will be stretched out until June 2023. Qualified organizations will be allowed to loan up to HK$9 million, rather than HK$6 million, and repay the interest (not the principal sum) for a maximum of 10 years rather than eight.
- SME tenants cannot be penalized for late rent – The government has proposed a measure to allow SME inhabitants renting under Hong Kong’s property developers to postpone payments for six months, which is subject to Legislative Council approval. Once approved, developers will not be permitted to chase tenants for rent.
- HKD 10 billion for Hong Kong tech firms – The Hong Kong Growth Portfolio will fund HKD 10 billion in Hong Kong-listed and non-listed tech firms and startups. Hong Kong will use HKD 5 billion to set up the Strategic Tech Fund for local startups and the other half on an investment fund that will sharpen opportunities in the Greater Bay Area.
As you sit back and process all the budgetary information for the year, you may find yourself in planning mode for your business. Contact professionals like Startupr that will assist you with your Hong Kong business incorporation and many other services.
Hong Kong is a great place to start a business. Irrespective of what changes come in the annual budget, Hong Kong is renowned for the immense benefits it offers. Right from the great infrastructure to low taxation, and strategic location; Hong Kong has a lot to offer that will help make your business a success.
In case you are ready to incorporate and are scared of making the mistake, Startupr can help. Startupr not only serves you with the solution of your company formation problems but also serves you with experience, expertise, and effectiveness. We offer many additional services such as accounting & bookkeeping, mail forwarding services, and a lot more effectiveness with our amazing back-office system. You can rely on us when it comes to Hong Kong business-related services.