The Hong Kong Inland Revenue Department has announced the draft bill and orders providing for the implementation of certain measures of the 2022-23 Budget, which will be introduced into the Legislative Council on 16 March 2022
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Gazettal of Revenue (Tax Concessions) Bill 2022
The Revenue (Tax Concessions) Bill 2022 will be gazetted on March 4. The Bill seeks to implement tax concessions proposed in the 2022-23 Budget.
The Budget has proposed one-off reductions of salaries tax, tax under personal assessment and profits tax for the year of assessment 2021/22 by 100 per cent, subject to a ceiling of $10,000 per case. The reductions will be reflected in taxpayers' final tax payable for the year of assessment 2021/22. The proposals will benefit 2.01 million taxpayers of salaries tax and tax under personal assessment as well as 151 000 tax-paying businesses. The total government revenue forgone in 2022-23 will amount to $14.3 billion.
The Bill will be introduced into the Legislative Council on March 16.
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Gazettal of Rating (Exemption) Order 2022 and Revenue (Reduction of Business Registration Fees and Branch Registration Fees) Order 2022
The Rating (Exemption) Order 2022 and the Revenue (Reduction of Business Registration Fees and Branch Registration Fees) Order 2022 will be gazetted on March 4. The two orders seek to implement one-off rates concessions and waiver of business registration fees proposed in the 2022-23 Budget given the current economic and epidemic situations.
The 2022-23 Budget has proposed to waive rates for four quarters of 2022-23. For domestic tenements, the concession ceiling is $1,500 per tenement per quarter for the first two quarters; and $1,000 per tenement per quarter for the remaining two quarters. The ceiling for non-domestic tenements is $5,000 per tenement per quarter for the first two quarters; and $2,000 per tenement per quarter for the remaining two quarters. The proposed rates concession will benefit about 3.42 million properties, leading to revenue forgone of about $15.1 billion.
Moreover, the Budget has proposed to waive the business registration fees and branch registration fees for 2022-23 to reduce the operating cost of business amidst the uncertainties of the epidemic situation. The proposed waiver will benefit 1.5 million business operators, with revenue forgone of $3 billion.
The two orders will be tabled at the Legislative Council for negative vetting on March 16.