Dear Members

 

Please be informed that SCAA’s Taxation Committee has submitted the attached proposal to the Financial Secretary regarding his new Budget for 2021-2022.

 

2020 has been an exceptional year for all as the COVID-19 pandemic has caused unprecedented disruptions to the global economy and, similar to other parts of the world, Hong Kong’s economy recorded serious contraction due to the COVID-19 outbreak. In addition to the pandemic, US-China trade tensions, social unrest and other challenges together have all taken their toll in our economy, and surely unemployment is rising rapidly.

 

The HKSAR Government must implement timely and effective relief measures to provide the right stimulus to support the various sectors of Hong Kong and to protect employments, especially those employed by the SMEs.

 

Our suggestions for Relief Measures to help Businesses include:

• Tax Loss Carry Backwards/Group Tax Loss Relief
• Special Tax Deductions to encourage rent reductions by landlords
• Zero tax rate on the first 20% of the assessable profits of companies
• Super Deductions for Sanitary or COVID-19 related Items
• Waiving Business Registration fee

 

Our suggestions for Relief Measures to help Individuals include:

• Suspension for collection of provisional salaries tax for Year of Assessment 2022/23. 
• One off tax rebate of 100% of taxes paid in the previous years up to a maximum of HK$50,000.
• Increasing the child allowance from HK$120,000 to HK$160,000.
• Increasing the dependent parent/grandparent allowance and additional dependent parent/grandparent allowance from HK$50,000 to HK$70,000. For parent aged 55 or above but below 60, from HK$25,000 to HK$35,000.
• To continue for one more year the special measure on allowing payment of salaries tax by instalments without imposing additional charges and interests.

Other proposals include:

• Reform Hong Kong’s Tax System
• Review the Inland Revenue Ordinance (“IRO”)
• Relief measures for SMEs
• Development of Human Resources
• Deductibility of Charitable donations
• Special deductions for equipment used by elderlies
• Empowering and Equality for Working Mothers

 

Please refer to following link for our submission to Financial Secretary:-

https://www.scaacpa.org.hk/_cms/files/pdf/6898.pdf

 

SCAA cares for the community and our members. Let us work together to help Hong Kong to ride through this biggest storm in decades.

 

Budget Submission Task Force of Taxation Committee

1. Law, Elizabeth (Chairman)
2. Chan Cheong Tat (Advisor)
3. Wong Lung Tak, Patrick (Deputy Chairman)
4. Chen Chi Hing, Andrew
5. Cheng Chung Man, Alan
6. Hui, Jane
7. Wong Chun Sek, Edmund
8. Lau Kwok Hung, Kenneth
9. Wu Chun Sing, Parco
10. Leung Pak Kee, Jason
11. Lok Kit Ying, Virginia       
12. Yeung Chi Wai, Edwin

 

Thanks & Regards,
The Secretariat
The Society of Chinese Accountants & Auditors
T: (852) 2869 6680 ︱ F: (852) 2526 6434
E: info@scaacpa.org.hk
W: www.scaacpa.org.hk
A: 6/F, 88 Lockhart Road, Wanchai, Hong Kong