Package of Measures to Support Enterprises and Residents Announced in Hong Kong
On 15 August 2019, the Financial Secretary of Hong Kong announced a package of measures to counter the challenging external and local economic environments. The proposed measures aim to support enterprises, in particular small and medium-sized enterprises (SMEs), in safeguarding jobs and relieving people's financial burdens. SMEs account for over 98 per cent of local enterprises and around 45 per cent of total employment, and are the cornerstone of our economy. To assist our SMEs to cope with the operating pressure in the current economic environment, we will introduce the following support measures:
The tax-related measures are summarized below.
- Twenty-seven (27) groups of government fees and charges will be waived for a period of 12 months, which will benefit a wide range of sectors, including maritime, logistics, retail, catering, tourism, construction, agriculture and fisheries.
- Further to the Budget for 2019/2020, a one-off reduction of salaries tax, tax under personal assessment and profits tax will be increased from 75% to 100% for the year of assessment 2018/2019, subject to a maximum of HKD 20,000 per case.
- An additional 1-month allowance is provided to social security recipients based on the standard rates of comprehensive social security assistance (CSSA) payments, old age allowances, old age living allowances and disability allowances, respectively.
The above proposals will be submitted to the Legislative Council for approval.
Source: HKSAR Press Release