Accountancy physique CPA Australia said on Monday it expected Hong Kong to glimpse a fiscal deficit of HK$900 million this financial yr.
It said that while a buoyant stock market had been boosting revenue, the executive had dedicated big amounts of capital expenditure on initiatives just like the Northern Metropolis.
It forecast reserves to dip to HK$653 billion thru the cease of March – a level it considers to be healthy.
Sooner than the financial secretary’s funds proposals later this month, the community proposed that one near for the executive to additional enlarge revenue used to be to present tax deductions for companies searching for to listing in the Hong Kong bourse, which can perhaps well generate more market activities and set apart-responsibility revenue.
One more is to community strategic enterprises, equivalent to those in existence sciences, man made intelligence and fintech, beneath a completely different tax system to attract them to plot up shop in the Northern Metropolis.
“We counsel offering a preferential profits tax charge as low as 5 p.c,” said Karina Wong, CPA Australia Bigger China’s taxation committee deputy chairwoman.
“At the same time, the executive might well well rob into tale exempting set apart responsibilities on property leases for business and industrial trends in the metropolis for outlined classes, convey 10 years.”
Wong proposed keeping the 100 p.c salaries tax rebate for this fiscal yr for particular person taxpayers, capped at HK$6,000, along with completely different concessions.
“We counsel the introduction of a tax deduction of as much as HK$60,000 for working families who make inform of home helpers for caring for younger folks and the elderly.
“And we recommend the introduction of a tax deduction of as much as HK$2,000 for sports-connected costs to attend taxpayers to focal level on bodily neatly being and wellness.”
For miniature to medium enterprises (SMEs), the community proposes doubling the tax concession cap beneath the two-tier profits tax regime on the concessional 8.25 p.c charge from HK$2 million to HK$4 million of assessable profits.
It also said the SME Financing Guarantee Blueprint, which is on account of total in March, desires to be extended by one other two years to present companies more breathing room.
