Hong Kong Budget

On 26 February 2020, the Financial Secretary delivered the 2020-21 Budget which aimed to support enterprises, safeguard jobs, stimulate the economy and relieve people's burden. Key measures are:

Support enterprises & Safeguard jobs

• Introduce a concessionary low-interest loan with 100% Government guarantee for enterprises, which will be open for application for 6 months. Maximum loan of $2 million with repayment period up to 3 years. Moratorium on principal repayment for first 6 months.
• Reduce profits tax for 2019-20 assessment year by 100%, subject to a $20,000 ceiling.
• Waive rates for non-domestic properties for 2020-21, subject to a ceiling of $5,000 per quarter in first two quarters and $1,500 per quarter for remaining two quarters.
• Waive business registration fees for 2020-21.
• Waive registration fees for company annual returns for 2 years.

The following relief measures announced last year will continue to be implemented:

• Electricity charges for non-residential account: subsidise 75% of charges for 4 extra months, subject to a monthly cap of $5,000.
• Water and sewage charges of non-domestic households: waive 75% of charges for 4 extra months, subject to a monthly cap of $20,000 and $12,500 respectively.
• Local recycling enterprises: provide $100 million rental subsidy for 6 months.
• Rental for Government properties/ properties covered by short-term and temporary waivers: 50% reduction for 6 months.
• Hire charges for civic centres under Leisure and Cultural Services Department: 50% reduction for 6 months.
• Fees and rent for cruise lines and cruise terminal tenants: reduction for 6 months.

More business support measures amid the economic challenges are available here.

Financial services

• Lower minimum entry age of the HKMC Annuity Plan from 65 to 60.
• Launch a $1 billion pilot scheme for fixed-rate mortgages to help reduce risks of interest rate volatility for homebuyers.
• Issue inflation-linked retail bonds and Silver Bonds totalling not less than $13 billion.
• Issue green bonds totalling $66 billion in next 5 years.
• Waive stamp duty on stock transfers paid by the Exchange Traded Fund (ETF) market makers when creating and redeeming ETF units in Hong Kong.
• Establish a limited partnership regime and provide tax concession for carried interest issued by private equity funds to attract them to domicile and operate in Hong Kong.

Innovation and technology

• Earmark $3 billion to take forward Phase 2 of the Science Park Expansion Programme.
• Explore the establishment of a third InnoHK research cluster.
• Increase the grant ceiling under the Technology Voucher Programme to $600,000 and raise the Government’s funding ratio to 75%.
• Inject $345 million for a pilot subsidy scheme to encourage the logistics industry to enhance productivity through the application of technology.

Tourism

• Additional funding of over $700 million for the Hong Kong Tourism Board to step up external promotion after the epidemic.

Trade

• Additional funding of $150 million for the Hong Kong Trade Development Council to assist Hong Kong enterprises in exploring business opportunities.

Professional services

• Earmark about $450 million to implement the “Vision 2030 for Rule of Law” project to strengthen the Hong Kong community’s understanding of the concept of the rule of law and its implementation.