Speak to an advisor: +852 5803 2409
Register with Sleek and subscribe to accounting to save HK$2000 OFF T&C apply

Get

HK$2000 OFF

when you

 when you register your company with Sleek

and subscribe to our accounting plans.

register your company with Sleek and subscribe to our accounting plans.

Resources

Hong Kong Budget 2021: What You Need to Know

6 minute read


Hong Kong is on its tracks to recover from the effects of the COVID-19 pandemic. This was one of the key messages communicated by Finance Secretary Paul Chan in his latest address on the Hong Kong budget for the fiscal year 2021/2022.

With the city’s economy projected to grow between 3.5 to 5.5 per cent in 2021 and an average of 3.3 per cent each year from 2022 to 2025, businesses must not only prepare to safeguard their businesses but gear up to operate in a post-COVID world.

In his address, Chan announced counter-cyclical measures costing more than HK$120 billion to boost the Hong Kong economy – but what does that mean for your business? Keep on reading to know the key highlights!

Overview:

For businesses

1. HK$9.5 billion package for enterprises

  • Businesses will benefit from a package of measures worth HK$9.5 billion in total.
  • Measures include reducing profits tax for the year of assessment in 2020-21 by 100 per cent, subject to a ceiling of HK$10,000.

2. Extension for government-backed loans

  • Extend the application period of 100% guarantee low-interest loan for small- and medium-sized businesses to the end of 2021.
  • Extension of application period to the end of 2021.
    Borrowing limit to be raised from HK$5 million to HK$6 million, and the maximum repayment period increased from five to eight years.
  • Tenants in government properties to receive a 75 per cent rent reduction for six months starting April 2021.

3. Business fees and domestic bills cut

  • Waiver of business registration fees for 2021-2022 for businesses badly affected by the pandemic.
  • Waiver of 75 per cent for water and sewage charges payable by non-domestic households for eight months starting April 2021, subject to a monthly ceiling of HK$20,000 and $12,500 respectively per household.

4. Help for firms selling abroad

  • Scheme of HK$1.5 billion dedicated to supporting businesses with branding, upgrading and domestic sales.
  • New scheme will help companies develop their markets in 37 economies, up from 20.
  • Coverage in scheme to include investment promotions and protection agreements.
  • Funding ceiling for each enterprise  will increase from HK$4 million to HK$6 million.

5. Funding for businesses

6. Enhancements of green bonds

  • Emphasis to develop Hong Kong into  green finance trade hub.
  • Expand the issuing of green bonds from HK$100 billion to HK $200 billion.

7. Travel bubble plans

  • Arrangements for air travel bubbles with countries of close economic relations and stabilizing epidemic conditions.

For employers and employees

1. Reduction in salaries tax

  • Five-pronged strategy starting with a reduction in salaries tax and tax under personal assessment for the year 2020/21 by 100 per cent, subject to a ceiling of HK$10,000.

2. Emphasis on employment

  • HK$6.6 billion dedicated to creating 30,000 jobs.
  • Launch the fourth tranche of Love Upgrading Special Scheme to provide more training options and online courses.
  • Plans to expand the scope of Continuing Education Fund to include online courses.

Wrap up

Hong Kong’s economy is geared up to recover from the turbulent year brought about by 2020. With these measures, it provides an optimistic outlook to the city’s economy and hardships faced by many businesses during this difficult period.

More details will be added to the article as they are released over the coming days. Meanwhile, for any enquiries on how to help manage your business operations, reach out to us for more information. Our team of experienced and dedicated staff will be happy to help!

For further information on the Hong Kong Budget 2021, visit the official website here.

Ready to start your business? Talk to our sales team.

Ready to grow your business?

Our expert team is here to help you. Explore our incorporation services or contact our team to get personalised advice today.

Start a business in less than 3 hours with us. Talk to our experts today.

Subscribe to our newsletter

Our jam-packed newsletter covers monthly compliance updates, upcoming events and exclusive offers

Other articles that might interest you

Related content

What is unique business identifier (UBI) and what every hong kong limited company needs to know

Phasing out of Company Registration Number: What is Unique Business Identifier and What Every Hong Kong Limited Company Needs to Know

The Unique Business Identifier (UBI) system is intended to provide a streamlined approach for businesses operating in Hong Kong, increasing communication effectiveness between them and government departments. This blog post delves into what this means for companies here. How can it help improve business operations and ensure they remain competitive within this rapidly changing commercial environment?

top feng shui for business success 2024

Maximize Prosperity: Top Feng Shui for Business Success 2024

As the Wood Dragon Year approaches, businesses worldwide are eager to harness its energy to maximize prosperity and success. In this blog post, we explore the ancient Chinese practice of Feng Shui for business success 2024, which offers a wealth of strategies to help businesses thrive in the dynamic and transformative energy of the Wood Dragon Year. From understanding the Wood Dragon energy to optimizing office space and aligning with the Fire element, let’s delve into the world of Feng Shui and uncover its secrets to business success.

complete guide to business registration

Your Comprehensive Guide to Business Registration in Hong Kong

Are you considering expanding your business horizons and tapping into the thriving market of Hong Kong? With its strategic location, business-friendly environment, and robust legal framework, Hong Kong is an attractive destination for entrepreneurs and investors alike. But before you can start your business ventures in this dynamic city, you must first understand the ins and outs of business registration in Hong Kong.

Contact us

We’d love to help. Share your contact details and we’ll call you back

Contact us

We’d love to help. Share your contact details and we’ll call you back

Start a business in less than 3 hours with us. Talk to our experts today.

WhatsApp Us

Get HK$2000 off on
your first Sleek
service purchase!

Offer valid when you register your company with Sleek and subscribe to our accounting OR audit and tax plans. T&Cs apply. Privacy policy.

Terms and Conditions of the Promotion:

Before participating in this promotion, you must carefully read and agree to abide by the following terms and conditions.

  1. Eligible Users: To enjoy this offer, customers must purchase Incorporation package with registered address and audit and tax/accounting services at the same time. Valid customers will receive a fee waiver of HKD 2,000.
  2. Promotion Period: This promotion is valid from Jun 19-Jul 2, 2023. Sleek reserves the right to end this promotion at any time without prior notice to customers.
  3. Fees and Payment: Customers must pay the service fees according to Sleek’s standard payment terms. The HKD 2,000 waiver will be applied as a discount on the customer’s invoice.
  4. Governing Law and Jurisdiction: These terms and conditions shall be governed and construed in accordance with the laws of Hong Kong. Any dispute arising out of or in connection with these terms and conditions shall be subject to the exclusive jurisdiction of the courts of Hong Kong.
  5. Confidentiality: Sleek shall treat all information provided by the customer as confidential and shall not disclose such information to any third party, except as required by law or with the customer’s consent.
  6. Limitation of Liability: To the extent permitted by law, Sleek shall not be liable for any direct, indirect, or consequential loss or damage arising out of this promotion.
  7. Disclaimer: To the extent permitted by law, Sleek shall not be responsible for any loss or damage arising from the customer’s use of this promotion. Sleek does not guarantee the accuracy, completeness, reliability, timeliness, suitability, or availability of the website and its content. Sleek reserves the right to change the website and its content at any time without prior notice to customers.
  8. Cancellation of Orders: If customers wish to cancel an order, they must contact Sleek’s customer service department within 24 hours of submitting the order. Orders cannot be cancelled if they have already been processed
  9. Links to Third-Party Websites: Sleek’s website may contain links to third-party websites that are not under Sleek’s control. Sleek is not responsible for the content, privacy policies, or practices of third-party websites and does not endorse or recommend them. Customers should carefully read the terms and conditions and privacy policies of any third-party website before using it.
  10. Accuracy of Registration Information: Customers warrant that all registration information provided is accurate, complete, and up-to-date. If a customer’s registration information changes, the customer should update their account information promptly. Sleek shall not be liable for any loss or damage arising from the customer’s provision of inaccurate or incomplete registration information.
whatsapp icon

Chat with us on WhatsApp from your mobile

hk_whatsapp_qr_2

30 Days Money Back Guarantee

Our refund policy:

We care about you – within 30 days from your purchase, if you’re unhappy with our services, we’ll refund our fee. Email or call us, and we’ll process the refund within five working days.

What it doesn’t cover:

We will not be able to refund Government fees once the application has been submitted, nor any third-party processing fees.

When it applies:

We cannot guarantee any specific legal outcomes when you use our services. For instance, a company registration might be filed correctly but still get rejected by the Company Registry for reasons beyond our control. We can only refund our fees for issues we are directly responsible for. In the case that you purchase a service and later change your mind, we can’t issue a refund.

Our customer support team is at your disposal for any questions or issue you may face.

Need help?

Our sales team is available from Mon - Fri 9am to 7pm (Hong Kong Time)

Let's get in touch

Book a time with our experts to guide you in finding the best solution.