2022-23 Budget – Tax Measure
On 23rd February, the Financial Secretary of the HKSAR government has officially announced the 2022-23 Budget. This time OneStart Business Centre would like to briefly introduce policies in the Budget that might interest our readers.
The budget aims at stabilizing, while at the same time maintaining investors and citizens’ confidence in the Hong Kong economy. The Budget could be mainly divided into 7 parts:
(1) Supporting Enterprises (2) Developing Industries,
(3) Building Capacity (4) Relieving People’s Hardship
(5) Public Finance (6) Land and Housing
(7) Building a livable city
For the year of assessment 2021/22, the financial secretary has proposed a one-off reduction of profits tax, salaries tax and tax under personal assessment. For profits tax, the maximum amount of tax reduction would be HKD 10,000 per case. This ceiling of tax reduction would be equally applied to each business. In this case, if your computed profits tax does not exceed HKD10,000, you would enjoy a profits tax-free financial year.
For salaries tax, which would normally be assessed in an individual basis based on the salaries one received, the maximum tax reduction is also HKD 10,000. Couple could choose to be assessed on a personal basis or a jointly basis with their partners. This ceiling would be applied to each individual taxpayer and each married couple. However, such tax reduction would not be applied to property tax.
The proposed reduction would directly reduce the amount of tax payable for only the year of assessment 2021-22. Please still be noted that, even though your tax payable might be under the amount of the ceiling, you still have to file the profits tax return and tax returns to the Inland Revenue Department as usual. After the enactment of the policy, the Inland Revenue Department would assess the tax payable and adjust for the reduction. There is no need to make any applications or enquiries regarding the deduction.
Another point you have to be aware of is that such tax reduction is only applied to the final tax of the assessment, but not to the provisional tax of the year 2021/22. Provisional tax paid would still be used to pay the final tax of 2021/22, but with the enacted tax reduction, the excess balance would be applied to pay for the provisional tax of the year 2022/23. If there is still an excess balance, the amount would be refunded to you.
Starting from 1st April, the business registration fees would be waived for one year! If you have an entrepreneur spirit with you, and have been longing to start your own business, now might be a golden chance for you. OneStart Business Centre has years of professional company formation experience. We could ensure you with the perfect service in the progress of company formation. No matter it is a limited company or an unlimited company, that you would wish to found, we could provide you with every aid you need. For more information on company formation, contact our consultant and schedule a meeting with them! We could plan your grand business opening together! Or CLICK HERE to know more.
The waiver period would last till 31st March 2023, any local companies registered under the one-stop company corporation and business registration regime, within the period, would enjoy a reduction of HKD 2,000 for the fees payable. For local companies that are registered otherwise within the period, the fees payable in respect of business registration certificates and branch registration certificates will be reduced by a sum of $2,000 and $73 respectively.
There is also a concessionary refund of the registration fees paid. If you have already paid for the registration fees for the waiver period, and would not be required to renew the certificates within the period, you could enjoy a concessionary refund. The types of business that might receive a refund are:
(a) Businesses or branches, which hold a 3-year registration certificate with a commencement date before 1 April 2022 and an expiry date on or after 31 March 2023; and
(b) Ceased businesses or branches, which last hold a 3-year registration certificate with an expiry date between 1 April 2022 and 31 March 2023.
Similar with the tax reduction, there is no need to apply for the business registration waive or the concessionary refund. The Inland Revenue Department would handle this. All you should do is to check carefully the tax notices and be aware of the waiver period, and make sure the above changes have been made to your payable. Or otherwise, you could always find OneStart Business Centre for help!
OneStart Business Centre has been providing professional Taxation consultation services for our customers. We could help you to check for every detail in your tax payables, and make sure you do not delay in filing the tax returns.
Interested in OneStart Business Centre’s Company Formation Service, and Taxation Consultation Services? Phone in to our hotline 3575 6888 or WhatsApp our helpful consultants!