WhatsApp Us WhatsApp Us WhatsApp Us
Speak to an advisor: +852 5803 2409

Resources

Latest Hong Kong Government Grants in Response to COVID-19

6 minute read

 

04/17/2020 update:

The Hong Kong Special Administrative Region Government has taken some exceptional measures to deal with this unprecedented situation. Costing a total of HK$287.5 billion.

With specific measures supporting enterprises by providing subsidy schemes, cash flow support and waivers. Some highlights include:

  • – Reduce profits tax by 100% in Year of Assessment
    (YA) 2019-20, subject to a ceiling of $20,000.
  • – Waive rates for non-domestic properties in 2020-21,
    subject to a ceiling of $5,000 per quarter in the first
    two quarters, and a ceiling of $1,500 per quarter in the
    remaining two quarters.
  • – Waive registration fees for annual returns charged by
    the Companies Registry for 2 years.

Click on the link below to learn more!

HKSAR Government’s package of measures to support individuals and businesses affected by COVID-19

The recent COVID-19 pandemic has had detrimental influence on the global economy, with very few regions left untouched.

In response to the economic impact, the Hong Kong government has announced a new plan for a series of financial reliefs to help businesses through this difficult period.

If you haven’t been following the new as closely, this article will break down the announcement and highlight the key areas that might be beneficial for you and your business.

What was announced?

In addition to the $30 billion Anti-epidemic Fund approved by Legislative Counsel on 21 February, the Hong Kong government has further announced a $120 billion relief package as a response to help businesses to stay afloat, retain workers in employment, relieve financial burdens of individual and business, as well as to facilitate the economy to recover once the epidemic is contained.

What are the key benefits for SMEs?

In the same report, the Hong Kong government announced a series of measures including rental concessions, fee waivers, provisions of loans and loan repayment deferral to reduce SME financial burdens.

Exports and trade

Strong growth was recorded in merchandise export and offshore trade too. This was mainly due to the hectic growth in the mainland economy and the surge in intra-regional trade.

Additionally, enhanced competitiveness of Hong Kong’s exports, underpinned by the distinct weakening of the US dollar and further domestic cost adjustment, as well as deriving from increasing competitiveness of mainland products in the world market, rendered an additional boost to the export performance and trade.

1) Enhance SME Financing Guarantee Scheme

  • Raise maximum loam amount per enterprise
 Original amountUpdated amount
80% guarantee$15M ->$18M
90% guarantee$6M ->$8M
100% guarantee$2M ->$4M
  • Provide concessionary interest at a rate up to 3% for one year for loans under 80% and 90% Guarantee
  • Extend application period and eligibility to publicly-listed companies
  • Raising the guarantee commitment for the Special 100% Guarantee Product from $20 billion to $50 billion to meet businesses’ demand
  • In totality, the 3 schemes are provided with Government guarantee commitment of $183 billion

 2) Easing the cash flow and burden of businesses and individuals

  • To expand the scope of the above rental concessions and waiver fee concessions to more businesses/organisations not covered by previous rounds of helping measures, such as depots, driving schools, regulators’ offices for public transport operators and advertising signboards.
  • To extend the 75% waiver of water and sewage charges payable by non-domestic accounts for another four months from August to November 2020, subject to a monthly cap of $20,000 and $12,500 respectively per account. This waiver is an extension of the eight months’ waivers already offered. About 250 000 non-domestic accounts will benefit
  •  To grant one-off interest-free deferral of loan repayment for two years to self-financing post-secondary institutions under the Start-up Loan Scheme, non-profit-making international schools and students receiving loans from the Working Family and Student Financial Assistance Agency (WFSFAA)

3) Deadline for payment of tax for year of assessment 2018/19 that will be falling due will be automatically extended for three months

Hong Kong Fiscal Impact

Total cost of the package amounts to $137.5 billion, including –

  • $135.7 billion additional expenditure of 109.5 billion to the Anti-epidemic Fund, $11.7 billion to the Loan Guaratee Scheme and $3.2 billion to CSSA
  • $1.8 billion revenue forgone from rental concessions, fee waivers, provision of loans and loan reyament deferrals.
  • These additional measures, assuming all payouts in 2020-21, will enlarge the budget deficit for 2020-21 from $139.1 billion to $276.6 billion, that is, from 4.8% of GDP to 9.5% of GDP

Next steps

Currently, we are still waiting for the Hong Kong government to further announce the next steps of implementation on the reliefs method. But we can assume that these measure will be taken very soon to help companies of all sizes.

Find more updates at Government news regarding COVID-19 here.

Sleek is here every step of the way. Read more about our company secretary services or get in touch with us today to get started.

Ready to start your business?

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

Other articles that might interest you

Related content

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.

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 an Incorporation package with an accounting service at the same time. Valid customers will receive a discount of HKD 888.
  2. Promotion Period: This promotion is valid from Jan 18 – March 31, 2024. 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 $888 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

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.