Highlights of the Hong Kong Government's Budget
Hong Kong's latest budget for 2022/23 mainly focuses on social security, SME development, salaries tax, profits tax and property tax etc. It mainly includes:
(1) The two-tiered profit tax rate for corporations (16.5&/8.25%) and the two-tiered profit tax rate for non-incorporated persons remain unchanged, and the 2021/22 full-year profits tax is reduced or exempted by 100%, with a cap of HKD 10,000;
(2) The standard rates and allowances of salaries tax and personal assessment remain unchanged, with a 100% reduction or exemption of salaries tax and personal assessment for the full year 2021/22, subject to a ceiling of HK$10,000;
(3) Waive the business registration fee for 2022/23;
(4) Launching an electronic consumption voucher program, firstly distributing 5,000HKD consumption vouchers to more than 6.3 million registered citizens in April;
(5) In terms of assisting the turnover of enterprises, the SME financing application will be extended for one year until June 2023, the government will guarantee 100%, the maximum period of 18 months will be increased to 27 months, and the upper limit will be increased from 6 million yuan to 9 million yuan , the repayment period is extended to ten years;
(6) Reduction and exemption of government charges in various industries, including: aviation, fishery, agriculture, construction, entertainment, etc., and the government financial revenue is reduced by 1.7 billion yuan;
(7) Reduce residential property rates for the four quarters of 2022/23, capped at HKD$1,500 per quarter per household for the first two quarters, and capped at $1,000 per quarter per household for the subsequent two quarters. Continue to reduce water and sewage charges by 75% for non-residential users, capped at HKD20,000 and HKD12,500 per month per household, for a period of 8 months to the end of November 2022. Provide an electricity subsidy of 1,000 yuan for each eligible residential electricity user account;
(8) Continue to reduce 75% of the rent and fees currently applicable to eligible government tenants of government premises / eligible short-term tenancies and waivers under the Lands Department for a period of 6 months to the end of September 2022. (100% rent waiver for tenants whose premises are closed at the request of the government);
(9) From October 2022, the existing 34 types of government fees and charges will be extended for a period of 12 months, benefiting a variety of industries, including aviation, maritime, logistics, retail, catering, fishing and farming, construction, tourism, and entertainment industry etc.;
(10) Optimize 100% guaranteed personal preferential loans, and extend the application period to April 2023. The loan amount has been increased to nine times the monthly salary while employed, with a cap of HKD$100,000. The longest repayment period is extended to 10 years, and the arrangement for interest repayment and non-principal repayment is extended to 18 months;
(11) Optimize 100% guaranteed corporate preferential loans and extend the application period to the end of June 2023. The loan amount is increased to the sum of 27 months of employee salaries and rent, with a cap of HKD$9 million. The longest repayment period is extended to 10 years, and companies can choose to repay part of the principal over a longer period of time.
