Reviving Hong Kong’s economy for a brighter tomorrow
Working together to revive the economy and relieve the financial burden of businesses and individuals. Find out our commentary and analysis on this year’s budget.
Financial Secretary Paul Chan Mo-po announced the 2021/22 Hong Kong Budget on 24 February, outlining the government’s plan for the economy and proposals for taxation developments. Keep a close eye on Hong Kong’s fiscal health to stay ahead of change. Find out from us how the budget will affect you and your business.
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Revised forecast deficit of HK$257.6bn for 2020/21 and forecast deficit HK$101.6bn for 2021/22
Extend the application period of 100% guarantee low-interest loan for enterprises to year-end and raise loan ceiling to HK$6m
Issue HK$5,000 electronic consumption vouchers in instalments to Hong Kong permanent resident and new arrival aged 18 or above
Inject HK$9.5bn into the Innovation and Technology Fund by two yearly instalments
Expansion of the express air cargo terminal, new premium logistics centre and the Three Runway System will increase the annual cargo handling capacity of Hong Kong International Airport to 9 MT in 2024
Earmark HK$200m to extend the IT Innovation Lab programme to primary schools and regularise the short-term IT related internship scheme for university students
1. actively implement the OECD’s BEPS 2.0 proposals according to international consensus;
2. minimise the impact on local SMEs where possible and strive to maintain the simplicity, certainty and fairness of Hong Kong’s tax regime;
3. minimise the compliance burden on affected corporations while safeguarding Hong Kong’s taxing rights; and
4. keep up the efforts in improving Hong Kong’s business environment and enhancing the competitiveness, with a view to attracting multinational corporations to invest and operate in Hong Kong.
The information in this booklet is based on taxation laws and practices as of 24 February 2021 and incorporates legislative proposals and measures contained in the 2021/22 Hong Kong Budget announced on the same date.
Note: Legislative proposals do not become law until their enactment and may be modified by the Legislative Council before being enacted.