Hong Kong has been a bastion of free trade and economics for decades, and its inherent advantages still ring true today. Transparent and easy company registration, low tax rates, excellent infrastructure, and its close relationship with the world’s second largest economy in China are just a few things in Hong Kong’s economic arsenal.
However with the rise of the global pandemic, Hong Kong, like all parts of the world, has taken an economic hit. Thankfully, the Hong Kong Government has been supremely proactive in its approach to combating any potential downturns from COVID-19, through a range of schemes and funds designed to energetically stimulate the economy. These measures constitute a Government investment of HK$287.5 billion (US$36.9 billion) — about 10% of GDP.
HK$120 Billion Hong Kong Business Support Fund
- 1. Small and Medium Enterprises (SMEs) can receive a 100% government guarantee on low interest loans, to the value of six month’s worth of rent and wages, to a cap of HK$4 million (US$513,000).
- 2. Taxes on profits for 2019/20 will be reduced by 100% to a cap of HK$20,000 (US$2,580).
- 3. Rates for business/non-domestic properties will be waived for all of 2020-21, with a cap of HK$5,000 (US$645) per quarter for Q1 and Q2, and HK$1,500 (US$193) per quarter for Q3 and Q4.
- 4. Business registration fees will be waived for 2020-21.
- Registration fees annual tax returns for companies waived for two years.
- 5. A four month, 75% subsidy for electricity costs to all business/non-domestic properties, with a cap of HK$5,000 (US$645) per month.
- 6. A four month, 75% subsidy for water and sewage costs to all business/non-domestic properties, with a cap of HK$20,000 (US$2,580) per month.
- A six month subsidy on rent for local Hong Kong recycling ventures.
- 7. Six months of reduced rent for tenants of government properties.
- 8. A six month reduction of rent and fees for cruise lines in the Cruise Terminal.
- 9. A six month, 50% reduction in fees for hiring civic centres.
- 10. Proposed HK$10,000 (US$2,100) cash payout to Hong Kong permanent residents.
Learn more about doing business in Hong Kong on this Hong Kong Company Registration blog.